Sales of new, single-family homes fell 8 percent in January, according to a report from Redfin.
January was the fifth consecutive month in which new, single-family homes declined year-over-year, Redfin said. However, the size of the drop was smaller than in December in all regions except the West.
“The shrinking size of sales declines, paired with falling interest rates, may be helping to improve builder confidence, which has been on the rise since December,” Redfin Chief Economist Daryl Fairweather said in a release. “Still, buyers understand that the market is shifting in their favor and have become more sensitive to high home prices.
“That added sensitivity could continue to put a damper on the sales of new homes, which tend to be more expensive than comparable existing ones,” Fairweather added.
According to the report, sales of new, single-family homes in January dropped 8.7 percent in the Midwest, 6.6 percent in the Northeast, 4.7 percent in the South, and 16.5 percent in the West.
During January, the median sale price for new, single-family homes was $343,160 in the Midwest, $479,950 in the Northeast, $291,000 in the South and $435,120 in the West.