New-home sales fall in January after December’s 12-month high
New-home sales fell 4.5 percent in January to 801,000 annualized units, while December saw an upward revision of 28,000 units. Compared to last year, January sales were 19.3 percent lower. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the data in the latest Macro Data Flash report.
“New home sales fell in January after December’s 12-month high,” said Long. “Supply chain issues are still bedeviling builders who face increased difficulties obtaining land, labor and materials.
“This has pushed back construction timelines,” added Long. “Seventy-five percent of sales this month were of homes not yet completed, while completed homes are remaining on the market for just 2.5 months, matching an all-time low dating back to 1975. The overall inventory situation in the new home market is better than for existing homes, leading to lower overall price appreciation in the former than in the latter.”
Sales fell in three Census regions with the Northeast falling 10.7 percent, followed by the South (- 7.4 percent), and the Midwest (-3.7 percent). The West region rose 1.2 percent on the month.
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