Sales of new single-family homes increased in December, marking a steady end to 2024. Purchases rose to a seasonally adjusted annual rate of 698,000, up 3.6% from November’s revised figure of 674,000, according to data released jointly by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. That’s a 6.7% increase compared with the same month a year earlier.
The uptick capped a year of modest growth, with an estimated 683,000 new homes sold in 2024, 2.5% more than 2023. The median sales price in December stood at $427,000, while the average sales price was $513,600, signaling stability after months of fluctuating home prices. Inventory, measured by the months’ supply of homes at the current sales pace, declined slightly to 8.5 months from 8.7 in November. Image: U.S. Census Bureau and the U.S. Department of Housing and Urban Development
The Northeast saw the most significant gains, with sales jumping 41.7% from November and 25.9% from a year ago. The Midwest faltered, posting a 3.3% decline month-over-month, though sales remained 40.3% higher than December 2023. In the South, sales dipped 2.1% from November, maintaining a slim 0.5% annual increase. Meanwhile, the West experienced a 20.3% monthly rebound, reflecting a 6.9% increase year-over-year.
The regional disparities underscore the influence of local economic conditions and housing affordability on buyer behavior. Strong growth in the West and Northeast highlights areas where demand remains robust, even as the Midwest and South grapple with cost pressures and slower activity.
While the market ended the year on a strong note, affordability remains a hurdle. Homes priced under $300,000 accounted for just 20% of December sales, reflecting limited availability in this critical price range. Higher-end homes, priced at $1 million or more, made up 4% of sales.
Builders are cautiously optimistic about 2025, citing a potential stabilization of mortgage rates and easing supply chain bottlenecks. However, industry sentiment remains tempered by broader economic uncertainties and persistent inflationary pressures.
