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New home sales jump 4.3% in January

Demand for new homes in the U.S. surged 4.3% in January as the housing market remains one of the strongest segments of the economy

Via AP news wire
Wednesday 24 February 2021 10:17 EST

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Demand for new homes in the U.S. surged 4.3% in January as the housing market remains one of the strongest segments of the economy

Last month's increase pushed sales of new homes to an adjusted annual rate of 923,000, the Commerce Department reported Wednesday. That's much stronger than the 855,000 economists were expecting. December's new home sales figure was revised higher as well, from 842,000, to 885,000.

The median price of a new home sold in January slipped 346,400 but is still up more than 5% from a year ago. Persistent demand fueled by record low mortgage rates has pushed prices higher over the past year.

After a three-month spring slide due to the coronavirus outbreak, housing boomed in the summer and fall until a downturn in November. It appears to be surging again with the busy spring buying season approaching.

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