Sales of new single-family homes rose for the third straight month in December, according to Marketwatch (subscription).
What’s going on: New home sales increased 2.3% last month at the annual rate to 616,000 units, bolstered by strong activity in the South and Midwest.
Price problems: Despite the progress, however, homebuyers continue to cite home affordability as a top concern. Some other data points to keep in mind:
- In the past year, single-family home sales have declined 26.6% year-over-year.
- On the plus side, the median new home sales price dipped for the second consecutive month in December to $442,100, down from $459,000 in November.
- However, the median sales price has increased 7.8% year-over-year from December 2021.
Falling supply: The number of new homes for sale declined 2.2% between November and December.
The last word: “Americans are getting used to the new normal of mortgage rates, and new home sales have picked up slightly at year’s end,” said NAM Chief Economist Chad Moutray.
- “With that said, affordability remains an issue, and single-family home sales show as much.”