According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD), new single-family home sales declined to a seasonally adjusted rate of 593,000 — a 7.8 percent month-over-month and 1.0 percent year-over-year decrease in home sales.
The estimate of new homes for sale at the end of January was 310,000, which represents a 6.1-month supply at the current sales rate.
Realtor.com senior economist Dr. Joseph Kirchner says January’s new residential sales statistics are underwhelming, especially after a few months of consistent growth in the construction sector.
“Though both new home sales and prices dipped for the second month in a row, these lower prices don’t negate earlier price gains that have put new homes out of reach for the majority of buyers,” said Kirchner in an emailed statement. “This is disappointing given the importance of new construction in powering overall home sales.”