New home sales in January were at a seasonally adjusted annual rate of 661,000, an increase of 1.5% compared with December and an increase of 1.8% compared with January 2023, according to estimates from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
The median sales price of a new home sold in January was $420,700. The average sales price was $534,300.
As of the end of the month, there were about 456,000 new homes available for sale in the U.S. – about an 8.3-month supply at the current sales rate. That’s an increase of 3.9% compared with January 2023.
“The outlook for the new single-family home market is positive, but there are challenges,” says Ksenia Potapov, economist for First American, in a statement. “Potential home buyers are sensitive to mortgage rate fluctuations and long-term interest rates have risen again in recent weeks in response to stronger-than-expected economic data.
“While the Federal Reserve is still expected to cut interest rates later this year and with fundamental demand remaining strong, builders are optimistic for the future,” Potapov adds. “However, the significant boost in home sales activity typical for the spring home-buying season may be delayed later into the summer.”
Photo: Alexander Andrews