Sales of new single-family homes in December were at a seasonally adjusted annual rate of 842,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 1.6% above the revised November rate of 829,000 and is 15.2% above the December 2019 estimate of 731,000.
An estimated 811,000 new homes were sold in 2020, which is 18.8% above the 2019 figure of 683,000.
“While we had expected an increase over the month, the gain was smaller than we anticipated,” says Doug Duncan, chief economist at Fannie Mae. “Combined with a downward revision to prior months, it left the fourth quarter total at 873,000 annualized units, somewhat below our forecast. Still, the decelerating trend in sales over the final months of the year is consistent with what we view as being necessary to bring the pace of sales in line with the pace of new construction.”
The median sales price of new houses sold in December was $355,900, while the average sales price was $394,900.
The seasonally adjusted estimate for new homes for sale was 302,000 at the end of December, representing a 4.3-month supply at the current sales rate.
“We currently forecast overall home sales to decelerate somewhat in coming months, reflecting the continued waning of last year’s delayed spring buying season, but we expect new-home sales will continue at a solid pace into 2021,” continues Duncan. “Low mortgage rates, tight supply of existing homes for sale, and continued heightened home buyer interest in suburban and smaller metro locations will likely be supportive of new-home sales going forward.”
