The sale of new single-family houses in December was at a seasonally adjusted annual rate of 664,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD).
The December estimate represents an 8% increase above November’s revised rate of 615,000 and a 4.4% increase from December 2022’s rate of 636,000 homes.
“New-home sales ended 2023 on a high note as mortgage rates dipped below 7% and resale supply remained limited,” says Nik Scoolis, manager, housing economics, for Zonda. “Looking forward, the current supply/demand dynamic is expected to continue, resulting in new-home sales pushing higher again in 2024.”
For the full year, an estimated 668,000 new homes were sold in 2023. The estimate represents growth of 4.2% on the 2022 full-year figure of 641,000 homes.
The median sales price of new homes sold in December was $413,200, while the average sales price was $487,300, according to the Census Bureau and HUD.
“Home builders charged less for houses in 2023 than in 2022—and ended up selling more houses,” says NerdWallet home expert Holden Lewis. “It’s remarkable that the median price of a new home was $30,400 lower in 2023 than the year before, even as inflation was on everyone’s mind. The lower prices are builders’ response to high mortgage rates.”
The seasonally adjusted estimate of new houses for sale at the end of December was 453,000, representing a supply of 8.2 months at the current sales rate.
