New home sales rose less than expected in January. Last month, 661,000 new homes were sold, far fewer than the 684,000 economists has been expecting. The month-over-month change of 1.5% was only half of the 3% that was expected. The December data was also revised lower to 651,000. According to data released by the US Census Bureau, the median new home sale prices was $420,700, while the average sales price was $534,300.

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Editor's note: This article was written by Stephanie Mikulich

Video Transcript

SEANA SMITH: All right. We got some breaking news out on new home sales just crossing the wires minutes ago, coming in less than expected. When you take a look at new home sales, actual number here at 661,000. That was lower than what the Street had been. Looking for here, the prior estimate was also revised lower to 651,000 a month on a month-- month over month basis. You're looking at an uptick of 1.5% here. The survey have been looking for a jump of 3% So missing the Street's expectations here.

So again, the results, not as strong as what had initially been anticipated heading into this report. So again, just another sign here, Brad, that the housing recovery is taking even longer to play out.

BRAD SMITH: Yeah. And as we look through this data just a little bit more here, one of the other things, the median sales price of new houses sold. 2024, well, in January 2024, $420,700 average sales price was $534-- $534,300. Just imagine if it was only $534. My goodness. We'd all have about five or six or seven homes. Anyway, when you think about some of the other factors that are really playing into this and the areas where we're continuing to see homes really dove into, it's going to come on the back of still this mortgage rate environment here.

And consumers, anyone who is looking at a home, especially according to some of the Freddie Mac data that we had seen come forward last week with regard to the existing home sales print that Freddie Mac data looking year over year. And there, you're taking a look at the 30 versus the 15, right now, it's still going to need to trickle a little bit lower for some of those potential sideline consumers to really full throatedly throw some bids out there into this market as well.

SEANA SMITH: Yeah, certainly. Again, the new home sales rising 10,000 in January from the prior month, lower than what forecasters had been anticipating heading into that report. But you're right to point out price there, Brad. The median new home price falling 2.6% year over year basis to $420,700. The average selling price though still above $534,300.