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New Home Sales 694K in December, 23% Higher than Last Year

New Residential Sales Solid But Miss the Forecast

New home sales came in at a seasonally adjusted annual rate of 694,000 in December, a solid number that missed the consensus forecast. Various forecasts ranged from a low of 719,000 to a high of 745,000. The consensus forecast was 728,000.

The U.S. Census Bureau and the U.S. Department of Housing and Urban Development said that’s 0.4% (±15.1%) below the downwardly revised November rate of 697,000.

However, it’s still 23.0% (±20.0%) above the December 2018 estimate of 564,000. Further, an estimated 681,000 new homes were sold in 2019. This is 10.3% (±6.4%) above the 2018 figure of 617,000.

An exchange showing one hand giving cash to the another for new house and keys, a vector illustration for new home sales. (Photo: AdobeStock)

The median sales price of new houses sold in December 2019 was $331,400. The average sales price was $384,500. The seasonally‐adjusted estimate of new houses for sale at the end of December was 327,000.

That represents a supply of 5.7 months at the current sales rate.

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PPD Business Staff

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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