Sales of recently built, single-family homes fell 7.8 percent in January to an adjusted annual rate of 593,000 units according to data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

But the National Association of Home Builders chairman Randy Noel states that builders are optimistic in home sales for the coming months.

"New home sales have taken a pause this month, but our builders are reporting confidence in the overall market and future sales condition," Noel said. "We expect the sales numbers to move forward in the months ahead."

Inventory of new home sales was 301,000 in January, a 6.1-month supply at the current sales price. Median sales price of new homes sold was $323,000.

In the Midwest new home sales grew 15.4 percent and one percent in the West. In the South, sales decreased 14.2 percent and 33.3 in the Northeast.

"The underlying economic fundamentals for housing demand remain strong and we expect more prospective homebuyers to enter the market in 2018," says NAHB senior economist Michael Neal.