New home sales in January were at a seasonally adjusted annual rate of 764,000, an increase of 7.9% compared with 708,000 December 2019 and up 18.6% compared with 644,000 in January 2019, 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 $348,200. The average sales price was $402,300.
As of the end of the month, there were about 324,000 new homes available for sale in the U.S. That’s about a 5.1-month supply at the current sales rate.
Regionally, new home sales increased 30.3% in the Midwest, 23.5% in the West and 4.8% in the Northeast, however, sales were down 4.4% in the South.
“The January sales pace matches what builders are saying in NAHB surveys – builder confidence is strong and low interest rates have fueled single-family housing demand at the start of 2020,” says Dean Mon, chairman of the National Association of Home Builders, in a statement. “Warm weather in many parts of the U.S. meant an early start to the home buying season. Meanwhile, the months’ supply has fallen to 5.1, indicating additional housing inventory is needed.”