Sales of new single-family homes fell 9.2% to a 494,000 seasonally adjusted annual rate in January, according to data released by the Commerce Department Wednesday.
The increase came after a revised 8.2% gain to a 544,000 rate in December, originally reported as a 10.8% increase to 544,000.
Thomson Reuters' poll of economists had predicted a 520,000 sales level for November.
Sales of new homes were 5.2% lower than the 521,000 rate in January 2015, Commerce said.
The supply of new homes at the current sales rate rose to 5.8 months from 5.1 months.
At the end of January, the number of new homes on the market grew to 238,000 from 2331,000.
The unadjusted average price of a new single-family home climbed to $365,700 from $347,700.
Meanwhile, the unadjusted median price fell to $278,800 from $295,800 in the previous month.
Sales in the Northeast were up 3.4% to 30,000 from 29,000 and sales in the South rose 1.8% to 290,000 from 285,000. Sales in the Midwest fell 5.9% to 64,000 from 68,000, and sales in the West plunged 32.1% to 110,000 from 162,000.
