Limited Existing Inventory Provides a Boost for New Home Sales in December

By Robert Dietz
NAHB Eye on Housing
January 27, 2025
Category: Finance & Economics
Region: United States

A limited amount of existing inventory along with solid demand helped new home sales end the year on an up note, even as buyers continue to grapple with housing affordability challenges. Sales of newly built, single-family homes in December increased 3.6% to a 698,000 seasonally adjusted annual rate. The pace of new home sales in December was up 6.7% compared to a year earlier. New home sales ended 2024 2.5% higher over the 2023 total. NAHB is forecasting a slight gain for sales in 2025 given ongoing solid macroeconomic conditions, particularly for the labor market. Furthermore, builders are cautiously optimistic about the building market given a post-election policy reset that seeks to eliminate unnecessary regulations.

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