January new home sales plunge to the slowest pace since 2022
Blaine, Minnesota. New homes in Lexington Waters priced from half a million dollars are high-efficiency homes and HOA Maintained.
Michael Siluk | UCG | Universal Images Group | Getty Images
Newly constructed home sales in January fell 17.6% month over month to a seasonally adjusted annual rate of 587,000 units, according to the U.S. Census Bureau. This is the slowest pace since 2022.
Housing analysts were expecting a much smaller decline.
Sales were also 11.3% lower than in January 2025, according to the U.S. Census, whose reporting was still delayed by last year’s government shutdown. December sales were also revised lower.
That number is based on signed contracts, meaning people shopped around when mortgage rates were lower than they are today. The average rate on a 30-year fixed loan hovered between 6% and 6.2% in January, according to Mortgage News Daily. It is currently at 6.36%.
As a result, the stock of homes for sale rose eight months in December to 9.7 months’ supply, according to the U.S. Census. This is 7.8% higher than January 2025.
More supply and less demand has caused builders to lower prices. The average price of a home sold in January was $400,500, down 6.8% from the previous year, the agency said. Prices for existing homes remain flat across the country, but builders are reporting increased incentives to get buyers in the door.
March data does not look any better. According to the National Association of Home Builders, an estimated 37% of builders cut prices in March; This rate increased compared to 36% in February.
Sales were lower nationwide, but fell hardest in the Northeast and Midwest, where severe winter weather could have an impact. But sales were down about 22% from December in the West, where weather conditions did not play a role.
