U.S. new home sales drop 7.8 percent in January

​​WASHINGTON, D.C. – New single-family home sales fell 7.8 percent in January, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

New home sales were at a seasonally adjusted annual rate of 593,000 units. 

“The moderation in new home sales may be attributable to the interest rate environment, which could be causing short-term market volatility,” said National Association of Home Builders (NAHB) Senior Economist Michael Neal. “However, the underlying economic fundamentals for housing demand remain strong, and we expect more prospective homebuyers to enter the market in 2018.”

The nation had a 6.1-month supply of homes with an inventory of 301,000. The media​​n sales price of new houses was $323,000. 

“New home sales have taken a pause this month, but our builders are reporting confidence in the overall market and future sales conditions,” said NAHB Chairman Randy Noel. “With strong consumer demand for housing, we expect the sales numbers to move forward in the months ahead.”