U.S. January New Home Sales - Trend showing little direction
January new home sales at 661k are up 1.5% to follow December’s 7.2% increase though the two straight gains did not fully erase the two straight declines that preceded them, and the data is on the low side of expectations.
Several surveys of housing sector demand, such as the NAHB and MBA surveys, have picked up significantly in an apparent response to lower mortgage rates at the end of 2024. Existing home sales picked up in January too. However the response from new home sales has been modest and with mortgage rates having recently risen the trend in new home sales looks set to remain without any clear direction.
January sales increased in all regions except the south after the South fully explained the December increase, so the January rise, while smaller than December’s, is broader based.
The median price saw a moderate 1.8% rise on the month which lifted yr/yr data to -2.6% from -13.8% as a sharp January 2023 fall dropped out.
The average price saw an erratic-looking 8.3% monthly bounce, moving yr/yr growth significantly positive at 7.8% from -13.2% in December. The median price probably better illustrates the underlying picture.
