US new home sales fall in December; inventory declines

In December, sales of new single-family homes in the U.S. saw a slight decline of 1.7%, reaching a seasonally adjusted annual rate of 745,000 units, as reported by the Commerce Department's Census Bureau. This drop follows an increase in sales to 758,000 units in November, reflecting the inherent volatility of the new home sales market, which is influenced by various factors including economic conditions and consumer confidence. Despite the monthly decline, there was a notable year-over-year increase of 3.8% in new home sales. Additionally, inventory levels decreased, with new housing stock falling to 472,000 units, the lowest in over four years. The inventory reduction suggests that builders are making strides in addressing previous excesses, potentially paving the way for future construction projects. The median price for new homes rose by 4.2% to $414,400 compared to the same month last year. The recent decline in mortgage rates, now averaging 6.01% for a 30-year fixed mortgage, may further stimulate the housing market, providing buyers with more favorable financing conditions as they navigate the current landscape of reduced inventory and fluctuating prices.