New home sales rise again in January

New home sales are off to a solid start in 2021.

Sales of new single-family homes increased 4.3% to a seasonally adjusted annual rate of 923,000 from a revised December 2020 rate of 885,000, according to the latest estimates released today by the U.S Census Bureau and the Department of Housing and Urban Development.

Today's report is also 19.3% above the January 2020 estimate of 774,000.

New single-family homes were at a supply of 4.0 months in January at the current sales rate, a dip from a 4.1-month supply in the prior month. Supply stood at 5.0 months in January 2020.

The median sales price of new houses sold in January 2021 was $346,400, falling 1.9% from a median price of $353,100 in the prior month. But the median price is 5.3% higher than a cost of $328,900 on a year-over-year basis. 

The average sales price was $408,800 last month, increasing 3.6% from the December 2020 average price of $394,700. Compared to the average price in January 2020, prices have increased more than 6.3%. 

Here’s how January’s new home sales break down by Region:

  • Sales in the Northeast declined 13.9% compared to December 2020 and fell 8.8% on a year-over-year basis.
  • Sales in the Midwest jumped 12.6% and are up 10.3% on a year-over-year basis.
  • Sales in the South were up 3% for the month but have shot up 40.4% on a year-over-year basis.
  • Sales in the West increased 6.8% in January but declined 6.3% compared to a year ago.

The complete Monthly New Residential Sales report for January 2021 is available here.