New home sales increased 11.9% in December from November to a seasonally adjusted annual rate of 811,000, the U.S. Census Bureau reported. Compared with December 2020, new home sales were down 14.0%.
New home sales increased 11.9% in December from November to a seasonally adjusted annual rate of 811,000, the U.S. Census Bureau reported. Compared with December 2020, new home sales were down 14.0%.
New home sales in 2021 overall were down 7.3% compared with 2020.
"The double-digit sales gain in December was likely due to motivated buyers who were seeking to sign sales contracts before interest rates move higher at the start of 2022," stated NAHB Chief Economist Robert Dietz. "Higher interest rates this year will price out some buyers from the market, but the existing home inventory shortfall remains."
New home inventory increased 34.8% from December 2020 to 403,000, a six-month supply.
Regionally, new home sales declined 16.6% in the Northeast and increased 56.4% in the Midwest, 14.9% in the South and 0.4% in the West.
The median sales price of new houses sold in December was $377,700, with an average sales price of $457,300.