Real Estate Blog

New Home Sales Up at Start of 2024

In January 2024, new home sales rose by 1.5% compared to the previous month, reaching a seasonally adjusted annual rate of 661,000, as reported by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This represents a 1.8% increase from January 2023.

The inventory of new single-family homes remained elevated, with 456,000 units available, up 3.9% from the previous year. However, the supply of completed, ready-to-occupy homes only accounts for 19% of total inventory, with the majority under construction.

The median sale price for new homes in January was $420,700, marking a 1.8% increase from December but a 2.6% decrease from the previous year. Notably, entry-level homes priced below $300,000 have become increasingly scarce, comprising only 15% of the market.

Regionally, new home sales saw a year-over-year increase of 4.9% in the Northeast and a significant 57.0% increase in the West. However, sales declined by 4.1% in the Midwest and 13.5% in the South during the same period.