The rate of new home sales slowed in January, according to a U.S. government report released today.

The U.S. Census Bureau reported that new homes sold at an annual rate of 1.23 million homes in the month, compared with the revised 1.3 million home pace in December.

Economists had forecast that January new home sales would remain little changed at the 1.27 million pace originally reported in December.

Today’s report showed there was a 5.2 month supply of new homes on the market in January at the current pace of sales, as the number of new homes available to be sold rose to 528,000. That’s up 2.5% from December and up 20% from the number of homes available in January 2005.

The report marked the first time the supply of new homes crossed the five-month mark since November 1996, according the bureau. The market had an average of a 4.5 month supply of home on the market throughout 2005.

“There’s been a definite upswing in the inventory level for some time,” said David Seiders, chief economist for the National Association of Home Builders.

Pricing information included in the Census Bureau report showed little weakness.

The median home price, the price at which half the homes sold for more and half sold for less, was US$238,100, unchanged from the median price for all of 2005 and up 4% from the December reading. The January median is also up nearly 7% from the year-earlier level, although it has slipped a bit more than 2% from the record US$243,900 reached in October.