New home sales leap as prices and rates drop


The median sales price of new houses in December was $442,100, down 3.7% from November but still up 7.8% from last year. Meanwhile, the average sale price was $528,400.

“In a further sign of decreasing housing affordability, even though the median home price is down for the second straight month, it is still up 7.8% compared to last year,” added Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. “Elevated inventories are another concerning sign of a soft market.”

The Census Bureau estimates that the number of new single-family homes for sale at the end of December was 461,000, representing an elevated inventory of nine months’ supply.

According to NAHB, there were just 33,000 completed, ready-to-occupy homes available for sale a year ago. By December 2022, that number surged 115% to 71,000, reflecting flagging demand and more standing inventory due to lower sales. Ready-to-occupy inventory, however, remains just 15% of total inventory.

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