• There were 664,000 (SAAR) new single family-home sales nationwide in December up 8% from the revised November rate of 615,000 and up 4.4% from December 2022, according to the U.S. Census Bureau.
• The median sales price of new houses sold in December was $413,200.
• The seasonally-adjusted estimate of new houses for sale at the end of December was 453,000, a supply of 8.2 months at the current sales rate.

What happened: Despite higher mortgage rates, 668,000 newly built homes were sold in 2023, that’s 4.2% higher than a year ago.

Why it matters: Given the low supply of existing homes coming on the for-sale market, new construction has helped to fill gaps. As a result, sales of newly built homes have increased in the past year while existing-home sales fell. The recent decline in mortgage rates at the end of the year coupled with a steady supply of newly built homes is supporting new home sales.

New home sales are likely to remain an important driver of home sales headed into next year. Not only have mortgage rates already fallen from their 23-year high peak, but builders are also making the math work for prospective home buyers by offering a combination of small price cuts and other incentives – such as rate buydowns and closing cost credits.