Sales of new, single-family homes dropped 6.9 percent from December to January and were down 4.1 percent year-over-year to a seasonally adjusted rate of 607,000, according to the latest data from the U.S. Census Bureau and Housing and Urban Development.

“Although existing home buyers are capitalizing on the recent decline in mortgage rates, it didn’t spark buyer interest in new homes in January,” Danielle Hale, chief economist for said in a statement.

Tendayi Kapfidze, the chief economist at LendingTree, took a broader look to find a positive out of the data.

“Sales may have broken their downward trend as the three-month average moved to the highest since June,” Kapfidze said. “Lower mortgage rates may be starting to support sales despite the January decline.”

The median home price for new sales in January 2019 was $373,100, according to the data.

“Prices of new homes sold actually declined 3.8 percent, as just below-median priced homes became a greater share of sales – 37 percent vs. 27 percent one year ago,” Hale said. “Given the rising cost pressures builders are facing, this could suggest continued difficulty for new homes and new construction ahead.”

At the end of the month, there were 336,000 new homes on the market, an estimated 6.6 months of supply.


Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription