New home sales end 2018 on up note
New single-family home sales rose 1.5% in December 2018, according to the latest report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
December sales were up 3.7% to a seasonally adjusted rate of 621,000 units, the highest level since May 2018, after a downwardly revised November report. Sales for November were knocked down to 599,000 units after an initial report of 657,000 units.
The December report was delayed due to the recent partial shutdown of the federal government.
Regionally, a total year basis for 2018, new home sales declined 16% percent in the Northeast and 1% percent in the West but increased 4% in the South and 6% in the Midwest.
Commenting on the latest numbers, new National Association of Home Builders Chairman Greg Ugalde said, “The slight gain for 2018 new home sales reflects solid underlying demand for homeownership.”
Ugalde, who is also a home builder and developer in Torrington, Conn., added that, “Housing affordability remains a challenge across the country, but conditions have improved in early 2019, as illustrated by the recent uptick in builder confidence.”
The inventory of new homes for sale rose in December to 344,000. For the prior year, the number stood at 294,000.
The median sales price increased to $318,600 in December but is lower than a year ago when the median sales price was $343,300. This is primarily due to the rising use of price incentives and a slow change toward additional entry-level inventory, the NAHB said.
“Despite a period of weakness in the fall, new home sales ended the year with a small gain,” said NAHB Chief Economist Robert Dietz. “While the December sales pace improved on a monthly basis, the current rate of sales remains off the post-Great Recession trend due to housing affordability concerns made worse by the rise in mortgage interest rates at the end of the year.
“We expect lower mortgage rates in the early months of 2019 will lead to additional new home demand,” Dietz added.
December sales were up 3.7% to a seasonally adjusted rate of 621,000 units, the highest level since May 2018, after a downwardly revised November report. Sales for November were knocked down to 599,000 units after an initial report of 657,000 units.
The December report was delayed due to the recent partial shutdown of the federal government.
Regionally, a total year basis for 2018, new home sales declined 16% percent in the Northeast and 1% percent in the West but increased 4% in the South and 6% in the Midwest.
Commenting on the latest numbers, new National Association of Home Builders Chairman Greg Ugalde said, “The slight gain for 2018 new home sales reflects solid underlying demand for homeownership.”
Ugalde, who is also a home builder and developer in Torrington, Conn., added that, “Housing affordability remains a challenge across the country, but conditions have improved in early 2019, as illustrated by the recent uptick in builder confidence.”
The inventory of new homes for sale rose in December to 344,000. For the prior year, the number stood at 294,000.
The median sales price increased to $318,600 in December but is lower than a year ago when the median sales price was $343,300. This is primarily due to the rising use of price incentives and a slow change toward additional entry-level inventory, the NAHB said.
“Despite a period of weakness in the fall, new home sales ended the year with a small gain,” said NAHB Chief Economist Robert Dietz. “While the December sales pace improved on a monthly basis, the current rate of sales remains off the post-Great Recession trend due to housing affordability concerns made worse by the rise in mortgage interest rates at the end of the year.
“We expect lower mortgage rates in the early months of 2019 will lead to additional new home demand,” Dietz added.