New home sales only account for about 14 percent of overall home sales. But these days, due to the shortage of previously owned homes available for sale, home buyer interest in the new home market continues to climb. In January, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new single-family homes rose 1.5 percent from the previous month and were about 2 percent higher than year-before levels. The improvement, though slight, comes at a time of year when sales are typically slow. Additionally, freezing weather last month affected much of the country and likely slowed sales in those regions. Still, compared to the market for existing homes, the new home market continues to post gains. Also, because new home sales are counted at contract signing rather than closing, they can be an important future indicator of housing market activity, making January’s increase a potentially good sign for spring. (source)
