New home sales fell 0.4% in December to a seasonally adjusted annual rate of 694,000 units, according to the U.S. Census Bureau. However, the rate is up 23% compared with December 2018.
Overall in 2019, new home sales increased 10.3% compared with 2018. The National Association of Home Builders (NAHB) said high builder confidence levels and low existing housing supply suggest growth ahead for new home sales in 2020.
"Despite the slow start for housing in 2019, lower mortgage interest rates accelerated new home sales during the second half of the year, marking it as the best year for new home sales since the recession,” NAHB Chief Economist Robert Dietz said in a statement.
The median new home sale price in December was $331,400, up from $329,700 in December 2018.
Year-over-year, new home sales grew 10.1% in the Midwest and 31% in the West. New home sales declined 11.8% in the Northeast and 15.4% in the South.
