January new home sales plunged to a record low of 309,000 at a seasonally adjusted annual rate, well below economists’ estimates, the Commerce Department reported yesterday.
Sales fell 11.2% from the December sales total, which was revised to 348,000 from the 342,000 sales reported last month. October sales were also revised to 362,000.
The previous record low was 329,000 new home sales set in January 2009. Records date back to 1963.
Economists expected 360,000 new home sales in January, according to the median estimate from Thomson Reuters.
The median sales price fell 5.6% in January to $203,500 and fell 2.4% from a year ago.
The number of new homes for sale at the end of January was 234,000, an increase from 233,000 in December.
The month’s supply of new homes jumped to 9.1 from 8.0 in December and is at the highest level since May.
