US new home sales miss expectations in January

SALES of new US single-family homes rose less than expected in January, likely curbed by frigid weather, but demand for new construction remains underpinned by a persistent shortage of previously owned homes.

New home sales increased 1.5 per cent to a seasonally adjusted annual rate of 661,000 units last month, the Commerce Department’s Census Bureau said on Monday (Feb 26).

December’s sales pace was revised lower to 651,000 units from the previously reported 664,000 units.

Economists polled by Reuters had forecast new home sales rising to a rate of 680,000 units.

New home sales are counted at the signing of a contract, making them a leading indicator of the housing market.

They, however, can be volatile on a month-to-month basis. Sales rose 1.8 per cent on a year-on-year basis in January. REUTERS