January was not a good month for single-family home sales as they fell from a 10-month high, thanks in large part to sales in the West Region dropping dramatically, Reuters reports. However, despite this big drop off, the housing market recovery is still intact.
Single-family home sales dropped 9.2 percent in January to a seasonally adjusted annual rate of 494,000 units. This actual number was well below the projected 520,000 unit-rate for January.
Sales in the western region fell 32.1 percent, the largest percent decline since May 2010, and were at their lowest level since July 2014. Sales in the Midwest also declined in January, though not as sharply, by 5.9 percent. Despite a blizzard at the end of the month, sales in the Northeast rose 3.4 percent. The South also saw an increase, albeit smaller, of 1.8 percent.
In addition, the services sector shrank in early February for the first time since October 2013, which suggests a weakening of economic conditions.