New-Home Sales Fall 2.2 Percent in December

Following three months of gains, sales of new single-family houses in December 2011 were at a seasonally adjusted annual rate of 307,000, according to figures released Thursday by the U.S. Department of Commerce. The latest rate is 2.2 percent below the revised November rate of 314,000 and 7.3 percent below the December 2010 estimate of 331,000.

An estimated 302,000 new single-family homes were sold in 2011, representing a 6.2 percent decline from the 2010 figure of 323,000.

"The bottom line is that, while 2011 was the worst year for new-home sales on record, signs of gradual improvement began to emerge near the end of the year across a growing number of markets," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB). "This nascent recovery should continue to gain strength in the year ahead as more buyers take advantage of the very good deals out there for newly built homes."

The median sales price of new houses sold in December 2011 was $210,300, while the average sales price was $266,000. The seasonally adjusted estimate of new houses for sale at the end of December was 157,000, representing a supply of 6.1 months at the current sales rate.

"The three-month moving average for new-home sales and numerous other indicators-such as builder confidence, new building activity and the razor-thin inventory of new homes for sale-show that the market is basically holding its own and no longer moving backwards," said NAHB Chief Economist David Crowe. "However, many of the same challenges that builders have cited in the past continue to pose obstacles to the market's advancement, including buyers' inability to sell an existing home, consumer concerns about job security, and tight credit conditions for both building and buying new homes."