New Home Sales Fell in January But Are Expected to Rebound

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New home sales in January were at a seasonally adjusted annual rate of about 607,000, a decrease of 6.9% compared with a revised 652,000 in December and a decrease of 4.1% compared with about 633,000 in January 2018, according to the latest estimates from the U.S. Census Bureau and U.S. Department of Housing and Urban Development.

The median sales price for a new, single-family home sold in January was $317,200. The average sales price was $373,100.

Previously, new home sales in December had reached an annual rate of 621,000, an increase of 3.7% compared with November but down 2.4% compared with December 2017, HUD reports.

Despite the drop in January, new home sales are expected to rebound this spring.

Permit issuance was up in January, according to HUD, indicating that more inventory is on the way, and the Mortgage Bankers Association’s Builders Application Survey shows that applications for new home purchases increased 6% in February.

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