January new home sales down 7.8 percent from December and 1.0 percent year-on-year

Sales of new single-family houses in January 2018 were at a seasonally adjusted annual rate of 593,000. This is down 7.8 percent from December and 1.0 percent year-on-year.  It is also the lowest rate since last August, with the decline potentially due to a combination of steeper prices, higher interest rates and less generous write-offs from tax reform enacted at the beginning of 2018.  New home inventory rose to a four-year high.

However, a caveat is important here:  Due to the relatively large margin of error given by the Census Bureau for these numbers (19.0 percent from December and 16.4 percent year-on-year), it's also important to review other sources for updates on the housing market.  The Bureau will also often update its estimates as more (and better) information comes in.

READ MORE