US New Home Sales Fall to Lowest Level Since October 2022
Sales of new single-family homes dropped 17.6% in January as winter weather and rising mortgage rates hit the market. Inventory rose to a 9.7-month supply.
Sales of new single-family homes in the United States dropped to their lowest level in nearly three and a half years this January, significantly underperforming market expectations. Data released by the Commerce Department’s Census Bureau revealed that sales tumbled 17.6% to a seasonally adjusted annualized rate of 587,000 units. This represents the lowest pace since October 2022 and follows a downward revision of December’s figures to 712,000 units instead of the previously reported 745,000.
Severe winter weather across large portions of the country is cited as a primary factor for the decline, as snowstorms and frigid temperatures likely prevented potential buyers from visiting properties. The slump was widespread, with sales decreasing across all four geographic regions. Notably, the Census Bureau is still processing data releases following delays caused by a government shutdown in the previous year.
