New home sales in the South took a nosedive to begin 2025, falling 14.8% from December to a seasonally adjusted annual rate of 392,000 in January and is the second-lowest level in the past 12 months, according to the latest data from the Census Bureau.
- New home sales in the South remain the dominant force in the market, making up 60% of all transactions nationwide.
- Despite the steep monthly drop, sales were still up 6.8% year-over-year.
Could Be Worse: Other regions fared even worse, with the Northeast experiencing a 20% plunge and the Midwest dropping 16.7%.
- On the flip side, the West actually actually rose 7.7% in January.
Nationally, the overall decline was 10.5%, significantly worse than the 3.9% drop economists had anticipated.
What They’re Saying: Housing analyst Lance Lambert pointed out on Twitter that “the number of unsold completed new single-family homes hits the highest level since July 2009,” signaling a growing supply-demand imbalance that could put further pressure on homebuilders.
Bottom Line: Elevated rates and prices along with economic uncertainty is a problem for the housing sector.