ARLINGTON, Va.—New-home sales fell to 697,000 units in December – down 0.4% from November's downwardly-revised rate of 694,000 units. Nevertheless, sales were 23% higher than a year ago.
"New home sales finished the year 10% higher by volume than in 2018, with most of those gains coming in the second half of the year," said NAFCU Chief Economist and Vice President of Research Curt Long. "As a spate of new construction comes online, that should address those pockets where supply shortages still persist, while continuing to place downward pressure on price growth."
Sales increased in two of the four regions in December: in the West 31%, followed by the Midwest (+10.1%). Sales fell 15.4% in the Southern region and 11.8% in the Northeast. Also of note, compared to a year ago, sales increased in three of the four regions.
Based on current month sales, there were 5.7 months of supply in December, up slightly from the previous month. The number of unsold homes left on the market rose to 327,000 units. This represents a 5.5% increase from a year ago, noted Long.