Last month’s level of new single-family homes was down by eight percent year from January 2018. On a regional measurement, the falling sales numbers were particularly acute in the West, where year-over-year sales plummeted by 16.5 percent last month, and in the Midwest, where annualized sales fell by 8.7 percent.
"The shrinking size of sales declines, paired with falling interest rates, may be helping to improve builder confidence, which has been on the rise since December," said Daryl Fairweather, Chief Economist at Redfin. "Still, buyers understand that the market is shifting in their favor and have become more sensitive to high home prices. That added sensitivity could continue to put a damper on the sales of new homes, which tend to be more expensive than comparable existing ones."