Sales of new single-family homes in America fell by 9.3 percent in December to a seasonally adjusted annual rate of 625K units, according to a new report from the U.S. Census Bureau. That was significantly worse than expected, the biggest monthly decline since August 2016, and the November figure was revised lower.
Regionally, new home sales fell across the country in December, but the biggest losses were found in the Midwest (-10.0 percent) and the South (-9.8 percent). The inventory of new single-family homes in December rose by 3.9 percent, and months’ supply lifted to 5.7 based on the current sales pace. The median selling price of new houses sold in December was $335,400, 2.6 percent higher compared to this same period last year. Despite the disappointing performance last month, 2017 in aggregate was still the best year for new home sales in a decade. Moreover, the trend remains positive for new home sales in America, which is encouraging since this particular economic metric tends to head sharply lower ahead of a recession.
Sources: Econoday, U.S. Census Bureau, FRBSLPost author: Charles Couch