Sales of latest U.S. Single-family homes declined in December, falling 1.7% to a seasonally adjusted annual rate of 745,000 units, according to data released Friday by the U.S. Census Bureau and the Department of Housing and Urban Development. The decrease follows an increase to a revised rate of 758,000 units in November, up from 656,000 in October.
The December data, which was delayed due to last year’s government shutdown, indicates a volatile trend in new home sales, which represent a relatively small portion of the overall U.S. Housing market. Sales advanced 3.8% year-over-year in December, according to the report.
Despite the monthly decline in sales, builders continued to make headway in reducing inventory levels. The number of new houses for sale fell to 472,000 units in December, down from 485,000 units in November. Notably, the inventory of homes under construction reached its lowest level in nearly four and a half years. At the December sales pace, it would grab 7.6 months to exhaust the current supply of new houses, a slight decrease from 7.7 months in November.
The median sales price of new houses sold in December was $414,400, a 4.2% increase compared to the same month in the previous year. This price increase comes as mortgage rates have begun to ease, potentially offering some relief to prospective homebuyers.
According to data released this week by Freddie Mac, the average rate on a 30-year fixed-rate mortgage declined to 6.01%, the lowest level since September 2022, down from 6.09% the previous week. This decrease in mortgage rates could provide a boost to the housing market in the coming months.
The U.S. Census Bureau is the federal government’s largest statistical agency, serving as the nation’s leading provider of quality data about its people and economy. The New Residential Sales data is based on estimates from sample surveys, partially funded by the Department of Housing and Urban Development (HUD).
The next New Residential Sales report is scheduled for release on March 25, 2025.