Sales of new single‐family houses in January were at a seasonally adjusted annual rate of 670,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development.
Last month’s number is 7.2% above the revised December rate of 625,000 but 19.4% below the January 2022 estimate of 831,000.
“Today’s new-home sales report showcases three main things,” says Ali Wolf, chief economist at Zonda. “First, the outperformance of housing markets in the South persists. Second, perception is everything. As consumers see some ‘deals’ in the housing market, they are interested in returning. And third, the new-home market is the clear beneficiary of the lack of resale inventory.”
The median sales price of new homes sold in January was $427,500, while the average sales price was $474,400.
The seasonally adjusted estimate of new houses for sale was 439,000 at the end of January, representing a 7.9-month supply at the current sales rate.
“January marked a surge of people signing contracts to buy new homes. It was the strongest sales pace since March 2022,” says Holden Lewis, home and mortgage expert at NerdWallet. “The increase in contract signings can be attributed to a decline in mortgage rates in January after a run-up in rates in October and November. Rates have bounced higher since January, which likely is acting as a drag on new-home sales in the meantime.”
