New Home Sales Fall 4.5% in January As Prices Surge

January new home sales declined 4.5% from December to a seasonally adjusted annual rate of 801,000, the U.S. Census Bureau reported. The sales rate was down 19.3% compared with January 2021 housing starts.

“Builders are grappling with supply-chain issues that are extending construction times and increasing costs,” stated Jerry Konter, chairman of the National Association of Home Builders.

The median sales price of new homes was $423,300, a more than 13% increase compared with January 2021.

Regionally, new home sales declined 10.7% in the Northeast, 3.7% in the Midwest and 7.4% in the South. New home sales in the West increased 1.2%.

The seasonally adjusted estimate of new houses for sale at the end of January was 406,000, a 6.1 month supply at the current sales pace.

The full report can be found here.