New Home Sales Up 2.3% in December
This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.
This morning's release of the December new home sales from the Census Bureau came in at 616K, up 2.3% month-over-month from a revised 602K in November. The Investing.com forecast was for 617K. The median home price is now at $442K.
Here is the opening from the report:
New Home Sales
Sales of new single‐family houses in December 2022 were at a seasonally adjusted annual rate of 616,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 2.3 percent (±18.5 percent)* above the revised November rate of 602,000, but is 26.6 percent(±13.2 percent) below the December 2021 estimate of 839,000.
An estimated 644,000 new homes were sold in 2022. This is 16.4 percent (±3.8 percent) below the 2021 figure of771,000.
The median sales price of new houses sold in December 2022 was $442,100. The average sales price was $528,400. [Full Report]
For a longer-term perspective, here is a snapshot of the data series, which is produced in conjunction with the Department of Housing and Urban Development. The data since January 1963 is available in the St. Louis Fed's FRED repository here. We've included a six-month moving average to highlight the trend in this highly volatile series.
Over this time frame, we see the steady rise in new home sales following the 1990 recession and the acceleration in sales during the real estate bubble that peaked in 2005. Since 2011, we have seen a similar rise that has only recently retracted.