Sales of New Homes Post End-of-Year Jump
January 28, 2015
Sales of newly built single-family homes soared 11.6 percent in December over the previous month, as the new-construction market continued to gain ground heading into the new year.
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Single-family new-home sales rose to a seasonally adjusted annual rate of 481,000 units in December, nearly 9 percent above December 2013 levels, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The inventory of new-homes for sale also rose, reaching a 5.5-month supply at the current sales pace. The median price of a new home sold in December was $298,100, up from November’s $291,600 median price.
“This uptick is in line with what our builders are telling us in surveys and on the ground—that they are seeing increased traffic and more serious buyers in the market for single-family homes,” says Tom Woods, chairman of the National Association of Home Builders.
The Northeast posted the largest gain of 53.6 percent in December month-over-month, followed by a 17.1 percent increase in the South, and 3.1 percent rise in the West. The Midwest was the only region in the U.S. to post a decrease in new-home sales in December, falling 11.5 percent last month.
"After a slow start to 2014 precipitated by bad weather conditions, new-home sales have ramped up in the second half of the year," says NAHB Chief Economist David Crowe. "We can expect this momentum to continue into 2015 with the release of pent-up demand, particularly as existing-home owners are trading up."
Updated: July 13, 2018