New Home Sales Tumbled 9.3% in December

New single-family home sales decreased to a seasonally adjusted annual rate of 625,000 in December, according to the U.S. Census Bureau and the Department of Housing and Urban Development. The December level was 9.3% below the downwardly revised November rate of 689,000 but 14.1% above the December 2016 estimate. It was the largest monthly percentage decrease since August 2016. A faded boost from the replacement of hurricane-damaged homes and unseasonably cold temperatures likely contributed to the dip.

Sales declined in each of the four regions, led by the Midwest, which fell 10.0%. The Northeast, South and West posted declines of 2.4%, 9.8% and 9.5%, respectively.

The median price of a new home was $335,400, up 0.1% from November. The average price was $498,900.

At the end of December, the seasonally adjusted estimated supply at the current sales rate increased from 4.9 months to 5.7.

Read the Census/HUD release.

About Stephen Newton

Stephen Newton is an economic research associate at ABA.
More from Stephen Newton >