New Home Sales Rose in December

Sales of new single-family homes rose for the third straight month in December, according to Marketwatch (subscription).

What’s going on: New home sales increased 2.3% last month at the annual rate to 616,000 units, bolstered by strong activity in the South and Midwest.

Price problems: Despite the progress, however, homebuyers continue to cite home affordability as a top concern. Some other data points to keep in mind:

In the past year, single-family home sales have declined 26.6% year-over-year.
On the plus side, the median new home sales price dipped for the second consecutive month in December to $442,100, down from $459,000 in November.

However, the median sales price has increased 7.8% year-over-year from December 2021.

Falling supply: The number of new homes for sale declined 2.2% between November and December.

The last word: “Americans are getting used to the new normal of mortgage rates, and new home sales have picked up slightly at year’s end,” said NAM Chief Economist Chad Moutray.

“With that said, affordability remains an issue, and single-family home sales show as much.”