Today's new homes sales report was a disaster. Sales fell 9.2% overall, sales in the west plunged 32%, the median price fell 5.7%, and supply rose to 5.8% from 5.1%.

The Econoday consensus estimate was 520,000 (seasonally adjusted annualized) in a range of 505,000 to 550,000. The report shows 494,000.

Highlights

A downturn out West helped pull new homes sales down a steep 9.2 percent in January to a lower-than-expected annualized rate of 494,000. The level, however, is still respectable given that there is no revision to December which stands at a very solid 544,000. Sales in the West, which is a key region for the new home market, fell 32 percent in the month which pulls down the region's year-on-year rate to minus 24 percent. The South and Midwest show only marginal year-on-year contraction with the Northeast, the smallest new home region however, up sharply.