Home Sales May Have Dropped In December, But Are Up Over 2016

ARLINGTON, Va.—New home sales dropped 9.3% in December – the largest monthly decrease since August 2016. However, despite the December decrease, sales in 2017 were 8.4% higher than in 2016.
This marks the best year for sales since 2007, noted NAFCU Research Assistant Yun Cohen.
"November's sales were also revised substantially downward, though it remains the best month for sales in over a decade," Cohen said in a
NAFCU Macro Data Flash report.
Sales declined in all four regions in December. Sales in the Midwest decreased 10%, followed by the South (-9.8%), the West (-9.5%) and the Northeast (-2.4%).
The median new home price, non-seasonally adjusted, increased from $334,900 in November to $335,400 in December, according to the Census Bureau. December's prices were 2.6% higher than a year ago, Cohen said.
Based on current-month sales, there were 5.7 months of supply in December, up from 4.9 months in November. The number of unsold homes left on the market rose from 284,000 to 295,000 units, which represents a 15.2% increase from a year ago, Cohen explained.
"Looking ahead, new home sales are expected to improve further in 2018," Cohen added. "The lack of affordable inventory has been the biggest constraint to sales. However, housing starts and permitting are each trending up, and in December homebuilder sentiment hit its highest mark in nearly 20 years."