Sales of new single-family homes surged 8% between November and December, climbing to an annual rate of 664,000, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Sales were up 4.4% compared to 636,000 a year earlier.
The median price of a new home sold during the month fell to $413,200 from $426,000 in November. Year over year, the median price was down from $479,500 in December 2022.
“Sales of new single-family houses in December 2023 blew past consensus expectations of 649,000,” First American Deputy Chief Economist Odeta Kushi said in a press release. “Mortgage rates fell in December to the lowest level since June 2023, boosting both demand and builder confidence. Mortgage rates have since moved lower in January, fueling further optimism.”
By region, the pace of new-home sales was up 32% month over month in the Northeast, 10.6% in the South, 9.2% in the Midwest and down 3.4% in the West.
December’s data reflects similar patterns noted at during the annual Florida Real Estate Trends Summit, where Florida Realtors® Chief Economist Dr. Brad O’Connor said that Florida saw almost $200 billion in closed sales in 2023, which wasn’t far below 2022, a super-strong sales year post-pandemic, he told a packed room of Realtors®. Moreover, that number was substantially higher than in the pre-pandemic year of 2018, according to Florida Realtors data.
“There’s still a lot of money flowing through our industry. We’re not dead,” O’Connor said. “Over the next several months, the market could reignite a little bit. Even though there aren’t as many homes for sale, the ones that are for sale are selling for more.”
