New single-family home sales closed out 2023 on a high note, with a seasonally-adjusted 664,000 new homes sold in December. This figure, released by the U.S. Census Bureau and the Department of Housing and Urban Development, represents an 8% increase from the revised November rate of 615,000 and a 4.4% rise compared to December 2022, which had an estimate of 636,000.
These statistics reflect a robust performance for the housing market, indicating sustained buyer demand despite challenges such as rising prices and inventory constraints.
“The new-home market has been a bright spot in an otherwise gloomy housing market. While the resale side will begin to enter recovery mode alongside lower mortgage rates, the new-home market will likely continue to outperform because builders can still offer incentives, while existing homeowners will still be held back by the rate lock-in effect," First American Deputy Chief Economist Odeta Kushi said.
In December 2023, the median sales price of new houses reached $413,200. These price levels underscore the ongoing trend of elevated home prices across the nation, driven by factors such as limited housing supply and strong demand.
“The price declines may be partially the result of builder price cuts to entice buyers, but it also signals that the ‘mix’ of new homes being sold may have shifted. The median price for a new home peaked in October 2022 at approximately $497,000. In that same month, 33% of new homes sold were priced below $400,000. The median sale price of a new home in December 2023 was $413,000, and 47% of homes sold were price below $400,000," Kushi said.
The report also noted that there were an estimated 453,000 new houses available for sale at the end of December 2023, translating to a supply of 8.2 months at the current sales rate. This indicates that while inventory is available, it is not abundant, and demand continues to outpace supply.
