【World Property Journal】U.S. New Home Sales Uptick in January

According to new data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes in January 2021 rose 4.3 percent to a 923,000 seasonally adjusted annual rate, from an upwardly revised December 2020 reading.

Strong demand stemming from low interest rates, favorable demographics and a suburban shift for home building to smaller, more affordable housing markets helped to lift new home sales in January, but rising lumber and material costs threaten to blunt this momentum.

"Historically low mortgage rates and solid demand spurred an increase in new home sales in January, with the sales pace more than 19 percent higher than a year ago," said Chuck Fowke, chairman of the National Association of Home Builders. "However, rising affordability issues are looming this year, particularly increasing building material costs, including lumber, which is adding $24,000 to the price of a typical newly-built home. Builders also cite rising regulatory issues as a potential concern."

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