The seasonally adjusted annual rate of new single-family homes sales declined 1.7 percent in January to 1.106 million compared to December, according to a recent U.S. Dept. of Commerce report. January sales increased 9.6 percent compared to January 2003's rate of 1.009 million units.
"We are projecting a 3 percent decline in new home sales for the year as a whole based primarily on anticipated upward movements in mortgage rates as the year progresses," said National Association of Home Builders Chief Economist David Seiders. "However, if interest rates remain at or near current levels throughout the year, new home sales could equal or even surpass the 2003 record."
Three regions registered sales declines for the month. The Northeast, South and West posted 5.0 percent, 2.1 percent and 3.9 percent declines, respectively, according to the report. The Midwest registered a 5.6 percent increase over the previous month. The inventory of new homes for sale in January increased to 370,000 units, a 4.1-month supply at the current sales pace -- quite low by historical standards.