New home sales fell in the South to a 16-month low to start 2024, according to the latest data from the Census Bureau.
- M-O-M: Sales of new single‐family houses fell to a seasonally adjusted annual rate of 358,000 to start 2024, a 15.6% drop from December and the lowest level since September 2022.
- Y-O-Y: Sales of new single-family homes are down 13.5% when compared to the same time last year.
Southern Dominance. Despite the huge drop, the South still represents 54.2% of new home sales in January.
- The South was the only region to start the year in the red. The Northeast jumped a whopping 72% to start the year while the West and the Midwest were up 38.7% and 7.7%, respectively.
Nationally. Sales of new single‐family houses rose slightly to a seasonally adjusted annual rate of 661,000 in January, up 1.5% from December and the second straight monthly increase.
- Year-Over-Year: New home sales were up 1.8% when compared to the same time last year.
- Swing & A Miss. Economists were expecting a bigger 2.5% increase to start the year.
BOTTOM LINE: It is pretty amazing that the South can see a 15% drop and still represent over 54% of new home sales.