According to the National Association of Home Builders sales of new single-family homes in January dropped by 1 percent compared to Decembers' numbers, however, new-home sales are up 3.5 percent compared to this time last year.
David Crowe, the National Association of Home Builders' chief economist said, "This is indicative of the incremental, steady progress that the market is making toward recovery in conjunction with modest economic and job growth. Increasingly, potential buyers are feeling better about their financial situation and their ability to buy a home, but the challenges posed by tight credit conditions and appraisal issues continue to slow that process."
As sales have increased over the past 12 months the inventory level of new homes on the market, given the current sales pace, are down to their lowest point on record with a 5.6-month supply.
As everyone knows with fewer homes available on the market the result is increased home prices which did increase in January. According to recent Commerce Department reports, the median price for a new single-family home has gone up slightly by 0.3 percent to $217,100.