New home sales data/Existing home market needs baby boomers to down size

New home sales in January totaled 661k, 23k less than expected and compares with 651k in December, revised lower by 13k. As this is a volatile data point it’s important to smooth it out. The 3 month average is now 640k vs the 6 month average of 657k and vs the 2023 average of 666k. For further perspective, the 2019 average was 685k and it got over 1mm in mid 2020.

Months’ supply held at 8.3 and the median home price fell 2.6% y/o/y (very influenced by mix).