New Homes Sales’ 7.1% Drop Is a Surprise

Sales of new homes fell 7.1% in January to their lowest level in nearly a year, the government said Friday, surprising analysts who had expected a rebound from a steep plunge in December.

The Commerce Department said new single-family homes were sold at a seasonally adjusted annual rate of 589,000 units in January, the worst performance since sales fell to 556,000 homes on an annual basis last March.

“Frankly, it’s a bit of a surprise,” said David Seiders, chief economist for the National Assn. of Home Builders. “I thought the weather would give us at least as good a month as December.”