Despite December Decline, New Home Sales Strong in 2017
Despite December’s decline, new home sales rose 8.3% overall in 2017 to 608,000 units.
Sales of newly built, single-family homes fell 9.3% in December to a seasonally adjusted annual rate of 625,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite this monthly decline, new home sales rose 8.3% overall in 2017 to 608,000 units.
“The number of consumers planning to buy a new home in the near future is trending upward,” said Randy Noel, chairman of the National Association of Home Builders (NAHB) and a custom home builder from LaPlace, La. “Inventory remains low, but its growth in 2017 is an encouraging sign. Our members are also telling us that market conditions continue to improve.”
“Some moderation in sales was expected this month after a strong November reading,” said Michael Neal, NAHB senior economist. “With ongoing job creation and rising home equity, we should see housing demand continue to grow in the months ahead.”
The inventory of new home sales for sale was 295,000 in December, which is a 5.7-month supply at the current sales pace. The median sales price of new houses sold was $335,400.