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03-26-26 | Economic News
"January's dip in new home sales reflects typical monthly volatility, as well as weather-related disruptions," said NAHB Chairman Bill Owens. Despite the monthly drop, Owens noted that the three-month moving average remains relatively stable, signaling underlying demand.
Affordability continues to weigh heavily on the market. Although mortgage rates averaged around 6.1% during the month-offering modest relief-high construction costs and broader economic concerns are limiting buyer activity. Builders are increasingly relying on incentives such as price cuts and upgrades to maintain sales.
Inventory levels rose slightly to 476,000 units, representing a 9.7-month supply, while the median home price declined 6.8% year-over-year to $400,500. Regional data showed mixed performance, with gains in the Midwest and South offset by declines in the Northeast and West.
https://www.nahb.org/news-and-economics/press-releases/2026/03/new-home-sales-down-in-january-on-weather-disruptions
New Home Sales Slide in January
Weather and Affordability Pressures Stall Momentum
New home sales dropped sharply in January as winter weather and affordability challenges slowed buyer activity despite slightly easing mortgage rates.
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New single-family home sales declined sharply in January, reflecting mounting pressure from economic uncertainty, winter weather and ongoing affordability challenges, according to analysis from the National Association of Home Builders.
Data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau show sales fell 17.6% from December 2025 and is 11.3% down January 2025. The decline was particularly pronounced in regions impacted by severe winter weather, including the Northeast and Midwest.
"January's dip in new home sales reflects typical monthly volatility, as well as weather-related disruptions," said NAHB Chairman Bill Owens. Despite the monthly drop, Owens noted that the three-month moving average remains relatively stable, signaling underlying demand.
Affordability continues to weigh heavily on the market. Although mortgage rates averaged around 6.1% during the month-offering modest relief-high construction costs and broader economic concerns are limiting buyer activity. Builders are increasingly relying on incentives such as price cuts and upgrades to maintain sales.
Inventory levels rose slightly to 476,000 units, representing a 9.7-month supply, while the median home price declined 6.8% year-over-year to $400,500. Regional data showed mixed performance, with gains in the Midwest and South offset by declines in the Northeast and West.
https://www.nahb.org/news-and-economics/press-releases/2026/03/new-home-sales-down-in-january-on-weather-disruptions
