New homes sales managed a small increase in December
following three months of losses including a substantial downturn in November.
The U.S. Census Bureau and the Department of Housing and Urban Development reported
that sales of newly built homes were at a seasonally adjusted annual rate of
842,000 units. This is a 1.6 percent increase from the downward revision of the
November estimate.
The revision downgraded those sales from an annual rate of
841,000, a 11.0 percent decline, to 829,000. The December rate of sales represents
15.2 percent year-over-year growth.

Analysts had expected a better recovery from the
November loss. Those polled by Econoday had predicted sales would be in the
range of 822,000 to 934,000. Their consensus was 871,000 units.

On a non-adjusted basis there were 55,000 homes sold
compared to 59,000 the previous month. For the year, sales totaled 811,000, an
18.8 percent increase from the 683,000 sales in 2019.

The median price of a home sold during the month was
$355,900 compared to $329,500 in December of 2019. The average sales prices for
the two periods was $394,900 and $377,700, respectively.

Sales in the Northeast fell 6.1 percent compared to
the previous month and are down 20.5 percent on an annual basis. The Midwest
saw a month-over-month gain of 30.6 percent. This puts the annual sales growth
at 13.3 percent.

The South’s sales dipped 5.1 percent compared to
November but remain 21.7 percent higher than in December 2019. There was a monthly
increase of 8.8 percent in the West and 10.4 percent from the pace a year

At the end of December there were an estimated 302,000
new homes available for sale. This is a 4.3-month supply at the current sales
page. In December of 2019, the 322,000 available homes were estimated as
sufficient for 5.3 months.

By Jann Swanson , dated 2021-01-28 11:08:39

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Courtesy of Mortgage News Daily

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