Sales of newly built houses fell less than expected in February in another sign that the US housing slump may be moderating slightly.

New home sales fell 1.8 per cent last month to an annual pace of 590,000, the lowest level in 13 years, beating economists forecasts of a drop to 580,000. Sales in January were revised up by 2.2 per cent to 601,000. The median sales price rose 8 per cent to $244,100.