MNI DATA IMPACT: US January Home Sales Fall 6.9% To 607k SAAR>

--Headline Decrease Led By 28.6% Decline in Midwest Region

--January Homes Supply Down 1.5%; Months Supply Up To 6.6 Months

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - New single-family home sales fell by 6.9% to a 

607,000 annual rate in January, led by a decrease in sales in the 

Midwest, South and Northeast regions, data released by the Commerce 

Department Thursday showed. 

     The new home sales pace was below the 624,000 rate expected by an 

MNI survey of analysts and the 625,000 Bloomberg consensus, but followed 

upward revisions to the previous two months. As a result, market 

participants are likely to see the January decrease as a negative 

factor, partially offset by upward revisions to the previous two months. 

The unadjusted sales pace was 6.3% below its year ago level. 

     Here are the key findings from the release:

     -New homes sales in December were revised up to a 652,000 pace 

from the 621,000 previously announced rate. The November pace was 

revised up to 628,000 from 599,000. Given the sales pace for January, 

the first quarter sales pace lies slightly below the fourth quarter 

average of 611,000.

     -When broken down regionally, the decrease in January headline 

sales was due to declines in all regions except the West. There were 

decreases in the Northeast (-11.4%), the South (-15.1%), the Midwest 

(-28.6%). The only increase was in the West region (+27.8%). 

     -The supply of new homes for sale fell by 1.5% in the month to a 

level of 336,000. The current level of supply is 13.9% higher than a 

year earlier, suggesting that supply is adequate to meet demand. 

     -Based on the movements in sales and supply in January, the months' 

supply rose to 6.6 months from the December months' supply of 6.3 

months. The January months' supply was also up from the January 2018 

level of 5.6 months. Supply of new homes remains fairly high relative to 

sales, as opposed to the very tight supply of existing homes available 

for sale. 

     -The median sales price fell by 0.6% to $317,200 from $319,100 in 

December. The median price stands 3.8% below the $329,600 level in 

January 2018. 

     ** MNI Washington Bureau (202) 371-2121 ** 

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