Sales of new residential homes saw a 7.8 percent decline in January, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
The drop brings the seasonally adjusted annual rate of sales to 593,000, down from December’s rate of 643,000.
January’s registered sales were also 1 percent below the January 2017 estimate of 599,000.
The median sale price of new houses sold in January was $323,000, with the average sale price being $382,700.
The seasonally-adjusted estimate for new houses up for sale at the end of January was 301,000.
National Association of Home Builders Chairman Randy Noel said in a statement that despite the January sales pause, builders are still reporting confidence in the overall market and future sales conditions.
NHAB Senior Economist Michael Neal noted that the drop in new home sales could be due to the interest rate environment causing short-term market volatility. “However, the underlying economic fundamentals for housing demand remain strong, and we expect more prospective home buyers to enter the market in 2018,” Neal added.
Sales for existing homes also saw a 3.2 percent decline in January.
