On a national basis, new-home sales fell from December’s seasonally adjusted annual pace of 1.22 million units to a seasonally adjusted annual rate of 1.11 million units in January.
Regionally, snowy weather in the Midwest contributed to a dramatic 40.3% decline in home sales there during January. The Northeast also felt the pinch of wet and snowy conditions, posting a 17.1% decline from December. Sales declined 3.3% in the South and increased 5.6% in the West.
Meanwhile, the number of unsold new units on the market in January climbed 3.5% to 438,000 or a 4.7-month supply at the current sales pace. “A good portion of the units reflected in this inventory have been permitted but not yet started,” noted Seiders.
“The bottom line is that supply and demand in the new-home market are well balanced, and we’re only looking for a modest setback of between 3% and 4% for home sales this year as the interest-rate structure gravitates upward. This housing market still has plenty of strength going forward,” he said.
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