Sales of new single-family homes surged 8% between November and December, climbing to an annual rate of 664,000, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.      

Sales were up 4.4% compared to 636,000 a year earlier.  

The median price of a new home sold during the month fell to $413,200 from $426,000 in November. Year over year, the median price was down from $479,500 in December 2022.    

“Sales of new single-family houses in December 2023 blew past consensus expectations of 649,000,” First American Deputy Chief Economist Odeta Kushi said in a press release. “Mortgage rates fell in December to the lowest level since June 2023, boosting both demand and builder confidence. Mortgage rates have since moved lower in January, fueling further optimism.” 

By region, the pace of new-home sales was up 32% month over month in the Northeast, 10.6% in the South, 9.2% in the Midwest and down 3.4% in the West. 

Months’ supply of new homes for sale fell 6.8% to 8.2 months from 8.6 months in November; on a year-over-year basis, inventory was down 3.5% from an 8.5-month supply in December 2022.