Washington, DC—Feb. 26--Demand for new homes fell to the lowest level in eight months in January, but sales didn't drop as far as analysts expected.
Sales of single-family homes declined 1.7% to a seasonally adjusted annual rate of 1.106 million, the Commerce Department said Thursday. That is the lowest level since last May's 1.081 million.
December new-home sales were revised to show a 1.3% advance from an earlier estimate of a 5.1% fall. The overall level of home sales for that month was revised up to a 1.125 million annual rate from 1.06 million.
November sales declined 3.3% to 1.111 million, revised down from an earlier reported drop of 2.8% to 1.117 million.
The January level of sales was stronger than Wall Street expectations. A Dow Jones Newswires-CNBC survey of 19 economists predicted sales would sink 0.9% to a 1.05 million annual rate.
Demand for new homes in most regions tumbled. Sales were down 5% in the Northeast, 2.1% in the South and 3.9% in the West. In the Midwest, however, sales climbed 5.6%.
The inventory of homes on the market climbed to a 4.1-month supply from a four-month supply in December.
Average home prices rose last month, increasing to $258,600 from $254,500. The median price advanced to $197,000 from $195,800 in December.
An estimated 84,000 homes were actually sold in January, based on figures that aren't seasonally adjusted.
The housing market has been solid the past several years, weathering the recession and surging last year as mortgage rates tumbled to record-low levels. But data in the new year have suggested some moderation from that sizzling pace. Home construction and existing-home sales both fell in January, a month that saw some unusually foul weather.
