January new home sales rose 3.7 percent from December, to 555,000 units at a seasonally adjusted annual rate (SAAR), according to the U.S. Census Bureau. The rebound in new home sales was expected to some degree, given weak December sales which were likely impacted by unseasonably cold weather across much of the country. However, sales were weaker than the consensus forecast, suggesting a modestly disappointing report.
January new home sales rose 3.7 percent from December, to 555,000 units at a seasonally adjusted annual rate (SAAR), according to the U.S. Census Bureau. The rebound in new home sales was expected to some degree, given weak December sales which were likely impacted by unseasonably cold weather across much of the country. However, sales were weaker than the consensus forecast, suggesting a modestly disappointing report (figure 1).
Over the year, new home sales started 2017 up 5.5 percent. Sales for the previous three months were revised lower by a combined 27,000 units, with the largest downward revision for November.
Sales jumped 22.2 percent in January from December in the volatile Northeast region, where sales can fluctuate given the low numbers. Sales in the West also rose strongly, by 10.9 percent month-to-month.
The number of new homes on the market increased 3.5 percent from December to 265,000 units (SAAR), the most new homes on the market since July 2009. Over the year, new home inventory is up almost 11 percent – though it remains below where it stood for much of the 1990s and early 2000s and is less than half its peak levels.
The median seasonally adjusted price of new homes sold in January 2017 was $318,850, up 2 percent from December and up 7.6 percent over the year. Price growth has moderated over the past few months with the 7-month moving average of annual price growth slowing from just shy of 5 percent in mid-2015 to 1.6 percent in January 2017 (figure 2).
