WASHINGTON (Reuters) – Sales of new single-family homes in the United States jumped to a nine-month high in December, fueled by a severe shortage of used homes on the market.
New home sales rose 11.9% last month to a seasonally adjusted annual rate of 811,000 units, the highest since March, the Commerce Department said on Wednesday. November’s sales pace was revised down to 725,000 units from 744,000 previously reported.
Sales soared in the densely populated North American South as well as the Midwest. They also rose in the West, but fell in the US Northeast.
Economists polled by Reuters had predicted a rise in new home sales, which account for more than 10% of US home sales, to a rate of 760,000 units. New home sales are an important indicator of the housing market, but can be volatile on a monthly basis.
Sales dropped 14.0% in December from a year earlier and reached a level of 993,000 units in January, the highest since the end of 2006. About 762,000 new homes were sold in 2021, down 7 .3% compared to 2020.
The new housing market is being supported by an inventory of used homes at a record low. Demand for housing is expected to remain strong even as mortgage rates rise sharply, which, along with high prices, will further reduce affordability.
The median price of a new home rose 3.4% in December from a year earlier to $377,700. There were 403,000 new homes on the market, up from 397,000 in November.
Homes under construction accounted for 65.3% of the inventory, with homes pending construction accounting for around 25%.
At the rate of sales in December, the supply of homes on the market would take 6.0 months to be exhausted, a period shorter than the 6.6 months in November.
(By Lucia Mutikani)
know more
+ SP: Man dies standing, leaning against car, and scene scares residents on the coast
+ One twin became vegan, the other ate meat. Check the result
+ Reincarnation in history: an age-old belief
+ Andressa Urach asks for money on the internet: ‘Help me pay my card bill’
+ Horoscope: check today’s forecast for your sign
+ CNH: see what you need to know for the application and renewal
+ See which were the most stolen cars in SP in 2021
+ Expedition identifies giant squid responsible for ship sinking in 2011
+ Everything you need to know before buying a crockpot
+ US Agency warns: never wash raw chicken meat
+ What is known about fluorone?
+ Trick to squeeze lemons becomes a craze on social media
+ IPVA 2022 SP: see how to consult and pay the tax
#home #sales #hit #9month #high #December