New Home Sales, which measure signed contracts on new homes, were up 1.5% from December to January, marking the second consecutive month sales increased. Signed contracts were also 1.8% higher than they were in January 2023.
What’s the bottom line? January’s modest increase wasn’t as large as economists had forecasted, as frigid temperatures around much of the country likely kept some potential buyers home last month.
However, demand for new construction remains strong due to the persistent shortage of existing homes for sale. On that note, more “available” supply is needed to meet buyer demand, especially as we head into the busy spring homebuying season. While there were 456,000 new homes available for sale at the end of January, slightly higher than the 452,000 seen in the previous report, only 80,000 were completed, with the rest either under construction or not even started yet.