New Home Sales Tumbled 7.8% in January

New single-family home sales decreased to a seasonally adjusted annual rate of 593,000 in January, according to the U.S. Census Bureau and the Department of Housing and Urban Development. The January level was 7.8% below the upwardly revised December rate of 643,000 and 1.0% below the January 2016 estimate. It was the lowest level since August. Higher borrowing costs and winter weather likely contributed to the dip in demand.

Sales declined in two of the four regions, led by the Northeast, which fell 33.3%. The South posted a decline of 14.2%, while the Midwest and West increased 15.4% and 1.0%, respectively.

The median price of a new home was $323,000, down 4.1% from December. The average price was $382,700.

At the end of January, the seasonally adjusted estimated supply at the current sales rate increased from 5.5 months to 6.1.

Read the Census/HUD release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.