New Home Sales In January 2024 Rise Modestly; Median Price Hits $420,700

The U.S. Census Bureau and the Department of Housing and Urban Development found sales of new single-family homes in January 2024 reached a seasonally adjusted annual rate of 661,000 units. This figure reflects a 1.5% increase compared to the revised December rate of 651,000 units and marks a 1.8% rise from January 2023's estimate of 649,000 units.

The median sales price for new houses sold in January 2024 stood at $420,700, while the average sales price was reported at $534,300, indicating a robust pricing environment for new homes.

Regarding inventory, the seasonally-adjusted estimate of new houses available for sale by the end of January was 456,000 units. This inventory level translates to a supply of 8.3 months at the current sales rate, suggesting a balanced market between supply and demand.

Despite fluctuations in the housing market and economic uncertainties, the data for January 2024 shows a steady performance in new home sales, with moderate growth compared to previous months. 

“The outlook for the new single-family home market is positive, but there are challenges. Potential home buyers are sensitive to mortgage rate fluctuations and long-term interest rates have risen again in recent weeks in response to stronger-than-expected economic data," First American Economist Ksenia Potapov said. 

But there are also concerns for the spring homebuying season. 

“While the Federal Reserve is still expected to cut interest rates later this year and with fundamental demand remaining strong, builders are optimistic for the future. However, the significant boost in home sales activity typical for the spring home-buying season may be delayed later into the summer," Potapov added.