December New Home Sales: A Banner Year in the Books
Overall, an estimated 811,000 new single-family homes were sold in 2020, up almost 20% from 2019.
- New home sales totaled 842,000 (SAAR) in December, up 1.6% from November and 15.2% year-over-year, according to the U.S. Census Bureau. Overall, an estimated 811,000 new single-family homes were sold in 2020, up almost 20% from 2019.
- The median sales price of new houses sold in December was $355,900, up 8% year-over-year.
- There were 302,000 new homes available for sale at the end of December, up 4.1% from November but down 6.2% from December.
Despite missing expectations somewhat in December –posting a solid number, but off slightly from highs hit earlier in the year — 2020 will still go down as the best year for new home sales since 2006. Historically low mortgage rates and an ongoing shortage of existing homes for sale stoked demand for new homes in 2020, and it’s likely that the continued spread of COVID-19 also added to the allure of a brand new, never-lived-in home for many buyers. The estimated 811,000 new homes sold in 2020 was an 18.8% increase from 2019, and should serve as proof that new home demand can and will continue well into 2021. Robust new home sales figures are also an important indicator of broader housing market activity to come. The supply of new homes for sale has been picking up lately, but remains low compared to historic norms — which is likely to incentivize builders to increase their activity, particularly when demand for housing remains solid. Expect the future permit and starts pipeline to be quite full this year. With a banner year in the books, today’s new home sales report set the stage for a solid start to 2021.
