New home sales declined in January

Home News New home sales declined in January

single-family homesWashington, D.C.—Sales of newly built single-family homes in January fell 4.5% to an 801,000 seasonally adjusted annual rate from a sharp upwardly revised reading in December, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“Demand is strong given a lack of existing home inventory,” said Jerry Konter, NAHB chairman. “Builders are grappling with supply chain issues that are extending construction times and increasing costs. Policymakers need to focus on alleviating production bottlenecks, particularly as it relates to lumber and other building materials.”

NAHB chief economist, Robert Dietz, added, “New home prices continue to rise as the cost of materials increases. Higher mortgage rates will slow home buying demand over the course of 2022 and the Russia-Ukraine crisis will add short-term volatility to the bond market.”

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the January reading of 801,000 units is the number of homes that would sell if this pace continued for the next 12 months.

New single-family home inventory was up 34.4% over last year, rising to a 6.1 months’ supply, with 406,000 available for sale, according to the National Home Builders Association (NAHB). However, just 37,000 of those are completed and ready to occupy.

The median sales price rose to $423,300 in January from $395,500 in December and is up more than 13% compared to a year ago, due primarily to higher development costs, including materials, according to the NAHB.

Regionally, on a year-to-date basis, new home sales fell in three regions, down 10.7% in the Northeast, 3.7% in the Midwest and 7.4% in the South. New home sales were up 1.2% in the West.

Must Read

Hardwoods West becomes new Bruce distributor

Mountville, Pa.—Hardwoods West, a distributor headquartered near Portland, Ore., will lead the effort to grow AHF's Bruce branded flooring market in the Northwest. Hardwoods...

Tile of Spain updates U.S. Quick Ship Collection

Miami, Fla.—Tile of Spain (TOS), the international brand representing more than 100 ceramic tile manufacturers belonging to the Spanish Ceramic Tile Manufacturer’s Association (ASCER),...

Mohawk Group’s Social Canvas now available

Dalton—Mohawk Group’s award-winning Social Canvas modular carpet collection is now available for specification. According to the company, the collection speaks to the triumph of...

Mercier Wood Flooring appoints third generation leadership

Montmagny, Quebec —As of May 27, 2022, Sébastien Mercier and Jean-Philippe Dumas, sons of Richard Mercier and Marielle Mercier, respectively, officially took over from...

U.S. Stone Industries earns sustainability certification

Herington, Kan.— U.S. Stone Industries, located here, has earned certification to the Natural Stone Sustainability Standard (ANSI/NSI 373). The company has achieved Silver status...

11 simple tips to improve your SEO now

(This story was originally published on socialmediatoday.com and was edited for content and style.) How are your webpages ranking in Google search results? Seen any...
Some text some message..
X