New home sales increased significantly in December, according to the U.S. Census Bureau. NAM Chief Economist Chad Moutray laid it out for us.
The recent surge: “New single-family home sales jumped 11.9% from 725,000 units at the annual rate in November to 811,000 units in December, the best pace since March,” said Moutray.
- Where we’re buying: “In the latest figures, sales rose sharply in the Midwest and South but weakened in the Northeast,” said Moutray.
The long slump: “Despite the strong improvement in the latest data, new home sales have trended lower since peaking at 993,000 units in January 2021, which was the strongest pace since December 2006,” said Moutray.
- Why we’re struggling: “Affordability issues, supply chain challenges and workforce shortages have contributed to housing market weaknesses over the course of last year,” said Moutray. “Indeed, new single-family home sales have fallen 14.0% over the past 12 months, down from 943,000 units in December 2020.”
The short supply: “There were 6.0 months of new single-family homes for sale on the market in December, down from 6.5 months in November and the lowest since May (5.4 months),” said Moutray. “The median sales price for new homes was $377,700 in December, pulling back for the second straight month from October’s record ($421,500). The median sales price rose 3.4% year-over-year.”