WASHINGTON – New single-family home sales dropped 3.3 percent in February to a seasonally adjusted annual rate of 440,000 units, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

"We still expect 2014 will be a strong year for housing," said David Crowe, NAHB’s chief economist. "The first two-month average of 2014 is exactly in line with where 2013 left off. If not for the unusual weather, we would easily be ahead of last year's pace. We also continue to see household formations and pent-up demand driving sales forward."

New-home sales activity sank 32.4 percent in the Northeast, 1.5 percent in the South and 15.9 percent in the West. The Midwest showed growth of 36.7 percent, after an unusually low January number.

The inventory of new homes rose to 189,000 units in February.