New home sales declined in January, reflecting typical monthly volatility as well as weather-related disruptions. On a three-month moving average basis, sales remain broadly in line with a year ago, suggesting underlying demand conditions have been relatively stable despite the month-to-month fluctuations. Meanwhile, builders continue to rely on incentives to attract buyers and sustain demand. The January NAHB/Wells Fargo Housing Market Index showed that 64% of builders used sales incentives, marking the 12th consecutive month this share exceeded 60%. Sales of newly built single-family homes fell 17.6% in January to a seasonally adjusted annual rate of 587,000 from a downwardly revised December reading. The pace of new home sales is down 11.3% from a year earlier. On a three-month moving average basis, sales were 688,000, remaining broadly in line with the 685,000 pace seen a year ago.