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Sales of newly built single-family homes fell 17.6% in January, to a seasonally adjusted annual rate of 587,000 from a downwardly revised December reading, according to new data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, and an analysis from the NAHB.
“January’s dip in new home sales reflects typical monthly volatility, as well as weather-related disruptions, most notably in the Northeast and Midwest,” says NAHB chairman Bill Owens, a homebuilder and remodeler from Worthington, Ohio. “On a three-month moving average basis, sales were 688,000, remaining broadly in line with the 685,000 pace seen a year ago. Builders are increasingly using incentives, including price reductions and upgraded features, to attract buyers and sustain market momentum amid ongoing affordability challenges.”
New single-family home inventory in January rose to 476,000 units, 0.4% higher than the previous month, but 4.0% lower than last year. This represents a supply of 9.7 months at the current building pace. Completed-for-sale new homes remained unchanged at 126,000, the highest level since 2009.
“New home sales fell in January largely because of weather-related disruptions, even as mortgage rates eased modestly,” said Jing Fu, NAHB senior director of forecasting and analysis. “According to the Freddie Mac Primary Mortgage Market Survey, the 30-year fixed mortgage rate averaged roughly around 6.1% during January, providing some relief for buyers. However, affordability pressures, including economic uncertainty, elevated construction costs and tariff risks, continue to constrain activity.”
The median new home sale price was $400,500, down 6.8% from a year ago. Nationally, new home sales rose 1.4% on a year-to-date basis.
