New home sales jump 7.9%
New single-family home sales jumped 7.9% in January to a seasonally adjusted annual rate of 764,000 from the revised rate of 708,000, the U.S. Department of Commerce reported today.
This pace is the highest level since July 2017 and 18.6% above the January 2019 rate of 644,000.
The median sales price of new houses sold in January 2020 was $348,200, rising more than 5% from the median price of $331, 400 in December 2019. The average price was $402,300, a 4.6% increase from the previous month’s average price of $384,500.
“The January sales pace matches what builders are saying in NAHB surveys – builder confidence is strong and low interest rates have fueled single-family housing demand at the start of 2020,” said National Association of Home Builders (NAHB) Chairman Dean Mon, a home builder and developer from Shrewsbury, N.J.
By region and compared to the prior month, sales were up 4.8% in Northeast, 30.3% in the Midwest, and 23.5% in the West. Sales in the South dropped 4.4% in January compared to December 2019.
Year-over-year, sales soared 46.7% in the Northeast, 47.8% in the Midwest, and 49.1% in the West but declined 2.4% in the South.
The seasonally‐adjusted estimate of new houses for sale at the end of January was 324,000, representing a 5.1-month supply at the current sales rate.
“Warm weather in many parts of the U.S. meant an early start to the home buying season,” said Jing Fu, NAHB director of forecasting and analysis. “Meanwhile, the months’ supply has fallen to 5.1, indicating additional housing inventory is needed.”
The complete Monthly New Residential Sales report for January can be read here.
This pace is the highest level since July 2017 and 18.6% above the January 2019 rate of 644,000.
The median sales price of new houses sold in January 2020 was $348,200, rising more than 5% from the median price of $331, 400 in December 2019. The average price was $402,300, a 4.6% increase from the previous month’s average price of $384,500.
“The January sales pace matches what builders are saying in NAHB surveys – builder confidence is strong and low interest rates have fueled single-family housing demand at the start of 2020,” said National Association of Home Builders (NAHB) Chairman Dean Mon, a home builder and developer from Shrewsbury, N.J.
By region and compared to the prior month, sales were up 4.8% in Northeast, 30.3% in the Midwest, and 23.5% in the West. Sales in the South dropped 4.4% in January compared to December 2019.
Year-over-year, sales soared 46.7% in the Northeast, 47.8% in the Midwest, and 49.1% in the West but declined 2.4% in the South.
The seasonally‐adjusted estimate of new houses for sale at the end of January was 324,000, representing a 5.1-month supply at the current sales rate.
“Warm weather in many parts of the U.S. meant an early start to the home buying season,” said Jing Fu, NAHB director of forecasting and analysis. “Meanwhile, the months’ supply has fallen to 5.1, indicating additional housing inventory is needed.”
The complete Monthly New Residential Sales report for January can be read here.