New-home sales fell year over year in all four major U.S. regions
SEATTLE, Feb. 22, 2019 /PRNewswire/ — (NASDAQ: RDFN) — Sales of new single-family homes fell 8 percent year over year in January, fifth consecutive month of year-over-year declines in new-home sales, according to Redfin, (www.redfin.com), the next-generation real estate brokerage. But the size of the drop was smaller than in December in all regions except the West, where sales fell by more in January than they did a month before.
“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,” said Daryl Fairweather, chief economist at Redfin. “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.”
Here’s a look at the annual drop in single-family new-home sales in January 2019, plus the final two months of last year (seasonally adjusted):
Region | YoY Change in New- | YoY Change in New- | YoY Change in New- |
Midwest | -0.3% | -13.1% | -8.7% |
Northeast | -12.6% | -17% | -6.6% |
South | -2.6% | -11.8% | -4.7% |
West | -8.1% | -13.2% | -16.5% |
National | -4.2% | -12.6% | -8% |
The trend in new residential sales the past few months has been similar to that of home sales overall, which fell 7.6 percent year over year in January, the sixth consecutive month of declines.
On a month-over-month basis, sales of new single-family homes nationwide dropped 0.2 percent in January.
New-Home Sales Data from Redfin (January 2019)
Region | Median Sale | YoY Change – | YoY Change – | Months of |
Midwest | $343,160 | 4% | 8.3% | 10.6 |
Northeast | $479,950 | 6.8% | -1.9% | 11.7 |
South | $291,000 | 0.3% | -1.2% | 8.1 |
West | $435,120 | 1.4% | 0.7% | 6.9 |
National | $339,000 | 1.2% | 0.2% | 8.3 |
To read the full report, complete with methodology and additional charts, please visit: https://www.redfin.com/blog/2019/02/new-home-sales-decline-january.html.
About Redfin
Redfin (www.redfin.com) is the next-generation real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer’s favor. Founded by software engineers, Redfin has the country’s #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry’s lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. The company has closed more than $60 billion in home sales.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin’s press release distribution list, subscribe here. To view Redfin’s press center, click here.
SOURCE Redfin