New home sales in the US slightly increased by 1.5% in January to 661,000 units, falling short of the expected 680,000.

The December sales figure was revised down to 651,000 units.

Median sales price of new homes rose to $420.7K, with an average sales price of $534.3K.

Inventory levels grew to an 8.3 months' supply with 456,000 new homes available at January's end.

Despite missing forecasts, new home sales still showed a 1.8% year-on-year increase.

Strong demand for new homes persists, driven by a shortage of existing homes on the market.