By National Association of Home Builders
Economic uncertainty, severe winter weather and housing affordability concerns acted as headwinds on the market in January.
Sales of newly built single-family homes fell 17.6% in January, to a seasonally adjusted annual rate of 587,000 from a downwardly revised December reading, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales is down 11.3% from a year earlier.
“January’s dip in new home sales reflects typical monthly volatility, as well as weather-related disruptions, most notably in the Northeast and Midwest,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, Ohio. “On a three-month moving average basis, sales were 688,000, remaining broadly in line with the 685,000 pace seen a year ago. Builders are increasingly using incentives, including price reductions and upgraded features, to attract buyers and sustain market momentum amid ongoing affordability challenges.”
