Sales of new single-family houses in January are estimated at a 657,000 annual rate, compared to the revised 734,000 (previously 698,000) reported for December, and the 680,000 expected in the Econoday survey of forecasters.

January's new home sales rate is down 10.5 percent from December's number and a 1.1 percent decline when compared to the January 2024 estimate of 664,000.

The median sales price of new houses sold in January was $446,300 compared to $415,000 in December. The average sales price was $510,000.

The inventory of new houses for sale rose from 488,000 at the end of December to 495,000 at the end of January. The months' supply rose from 8 months in December to 9 months at the current sales rate.

Home sales are seen easing to a 680,000 annual rate in January after rising to 698,000 in December from 674,000 in November.

New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as new home sales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio. Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once the home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, new home sales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the new home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.