ARLINGTON, Va.—New-home sales were up 7.9% from December's revised rate of 708,000 annualized units to 764,000 units in January.
NAFCU Chief Economist and Vice President of Research Curt Long noted strong gains in the Midwest, Northeast and West made up for falling sales in the South.
“New home sales surged in January after a strong upward revision of December numbers,” Long noted. “Mild winter weather has played a role, and it is notable that the warmest region – which would stand to benefit least from a warm winter – has seen seasonally adjusted sales declines since September. But overall, low mortgage rates, a strong economy, and the introduction of new housing stock continue to support sales growth.
“NAFCU expects these conditions to persist, though with the caveat that the warm weather may be pulling activity forward, setting up for a slower spring,” Long concluded.
Sales were 18.6% higher compared to January 2019.
The Median Price
The median new home price, non-seasonally adjusted, increased from $331,400 in December to $348,200 in January. Of note, this month's prices are up 14% from a year ago.
Sales rose in three of the four regions in January, with the Midwest growing 30.3%, the West posting a 23.5% gain, and the Northeast rising 4.8%. However, sales in the Southern region fell 4.4% during the month, Long said.
Based on current month sales, there were 5.1 months of supply in January, which was down from 5.5 in December. The number of unsold homes left on the market was up slightly from December at 324,000 units, representing a 6.6% reduction from year-ago inventory levels.