New home sales in January were at a seasonally adjusted annual rate of 593,000, a decrease of 7.8% compared with a revised 643,000 in December and 1% below the 599,000 seen in January 2017, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development.
The estimates came in far lower than most analyst projections.
The median sales price of a new home sold in January was $323,000. The average sales price was $382,700.
As of the end of the month, there were about 301,000 new homes for sale, about a 6.1-month supply at the current sales rate.
In a statement, Bill Banfield, executive vice president for Quicken Loans, says although new home sales came in lower than economists’ projections, we can expect to see new home sales rise again as more new inventory is brought online this spring.
“When we look at the bigger picture, inventory of new homes jumped to 301,000 units, the most since March 2009, which will lead to a healthier and more balanced housing market,” Banfield says. “It’s worth noting, however, that new homes usually come with a bigger price tag, something that can turn away many first-time buyers.”