- December sales of newly built single-family homes fell 0.4% from November but rose 23% from a year ago, to 694,000 (SAAR), according to the U.S. Census Bureau.
- The median sales price of new houses sold in December 2019 was $331,400.
- The seasonally‐adjusted estimate of new houses for sale at the end of December was 327,000. This represents a supply of 5.7 months at the current sales rate.
After a string of blockbuster reports, December’s new home sales data was a disappointing stumble right at the finish line of what was otherwise the best year for new home sales since before the Great Recession. These numbers could serve as a bit of a wakeup call for builders that have grown increasingly confident in the demand for the homes they’ve been putting up with growing vigor since the Summer. After revisions, this series has now fallen month-over-month in each of the past three months. Still, with overall inventory as scarce as it is currently, it’s clear that more construction is desperately needed. And low mortgage rates, a robust labor market and stabilizing geopolitical tensions suggest that demand for housing will stick around, and buyers are hungry for more housing options. The inventory shortage isn't going to be solved overnight, and there are headwinds, but the fundamentals that have been keeping housing on a steady path for much of the year should remain in place for at least the early part of 2020.
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