US New Home Sales Fall Short of Expectations in January
Chilly Weather Dampens Sales Growth
In January, the sales of new single-family homes in the US saw a modest increase that fell short of expectations. This sluggish growth can be attributed to the frigid weather conditions that likely deterred potential buyers. Despite this setback, the demand for new construction remains strong due to a persistent shortage of existing homes in the market.
Slow Growth in New Home Sales
According to the Commerce Department’s Census Bureau, new home sales rose by only 1.5% last month, reaching a seasonally adjusted annual rate of 661,000 units. This figure was lower than the initial estimate of 680,000 units projected by economists. The sales pace for December was also revised down to 651,000 units from the previously reported 664,000 units.
Positive Year-on-Year Growth
Despite the slower growth in January, new home sales showed a 1.8% increase compared to the same period last year. The sales data is collected at the signing of contracts, making it a reliable leading indicator of the housing market’s health. While monthly sales figures can fluctuate, the year-on-year growth trend indicates a positive trajectory for the new home construction sector.
