US new home sales fall sharply in January

[mahatmakanejeeves]

Source: Reuters

US new home sales fall sharply in January

By Reuters
February 26, 202510:11 AM EST Updated 33 min ago

WASHINGTON, Feb 26 (Reuters) - Sales of new U.S. single-family homes fell more than expected in January as persistently high mortgage rates sidelined potential buyers, the latest indication that housing market activity softened early in the first quarter.

New home sales plunged 10.5% to a seasonally adjusted annual rate of 657,000 units last month, the Commerce Department's Census Bureau said on Wednesday. The sales pace for December was revised higher to a rate of 734,000 units from the previously reported 698,000 units.

{paywall}

Read more: https://www.reuters.com/markets/us/us-new-home-sales-fall-sharply-january-2025-02-26/

[C_U_L8R]

1. No one's buying in a Trump economy.

That's a clear vote of no confidence in this backward regime

[Polybius]

5. Well, to be fair he was only President for 1/3rd of January

This might have happened regardless.

[Bengus81]

6. Yeah...but President elect since the first week of November

It's all the perception to people and buying decisions of what might happen and it's now crystal fucking clear what IS going to happen.

[bucolic_frolic]

2. Costs of insuring and roofing McMansions is a barrier. Tiny houses are best

A tiny house you can toss if its destroyed in a fire or flood. You can also re-roof it for under $3K. It's not an obsession and display of opulence. No gold toilets and door knobs.

[58Sunliner]

3. Home sales were down months before the election.

Home prices are now down in RVA.

[Bengus81]

7. And Harris was going to give first time buyers a what $25K down payment assistance

That all went away on Nov 5th. No surprise to me that the numbers are tanking faster. If Harris was in the new home market would be exploding,especially in the next few months with warming temps.

[IronLionZion]

4. Trump promised to bring down prices

many are not going to like how it's done. The Trump recession is coming. Tax cuts won't help.

[leftyladyfrommo]

8. Prices will go higher. We get lumber from

Canada. And I just read that mtg rates are going up.

[Raftergirl]

9. My kid just sold a townhouse in Salem Ma. Closing was on Monday. Sold for $30k over ask.Made $80k on

it in 4 years. Bought a condo in Boston’s North End. Paid $30k below asking. Of course it’s half the size and several hundred thousands more, but only a 5 minute walk to work. Much better for his work/life balance which is quite demanding and the commute was killing him, even though Salem is only 20 miles from his office. Closing is tomorrow. He and partner eventually want to buy single family home in Cambridge but nothing in their price range was decent and didn’t cost $2M+. Hoping to do that in about 1 1/2 years.

They will keep the condo and rent it out when time comes. They already own and rent out another condo in Boston and one in McLean, VA.

Not too bad for 30 year olds.