Following the significant disappointment of January's existing home sales, hopes were high for a rebound in new home sales (+3.5% expected after December's 9.3% plunge) but those hopes were crushed as January new home sales crashed 7.8% MoM.
This is the lowest level since August, even as the supply of homes at current sales rate climbed to 6.1 months from 5.5 months.
This is the biggest two-month drop in new home sales SAAR since August 2013.
The Median price dropped from $336,700 to $323,000 - the lowest since October...
16% of new homes sold in January cost more than $500,000, down from 22% last month.
As sales in the Northeast collapsed:
Northeast -33.3%, from 36K to 24K
Midwest +15.4%, from 65K to 75K
South -14.2%, from 351K to 301K
West +1.0%, from 191K to 193K
So we are saure NAR will blame 'inclement' weather - as opposed to soaring rates and plunging affordability.
Just as we warned previously, the following chart shows, that surge in rates will have a direct impact on home sales (or prices will be forced to adjust lower) as affordability collapses...
This won't end well.