FAQs

1. What is a new home sale?

A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction, or completed.

2. What is the median new home sale price in December?

The median new home sale price in December was $427,000, which was up 2.1% from a year ago.

3. Which region saw the strongest growth in new home sales in 2024?

The Midwest saw the strongest growth in new home sales in 2024, with sales up by 19%. Sales also rose in the Northeast (1.7%) and the West (2.6%), but declined slightly in the South (0.2%).

4. How does the current inventory of new single-family homes compare to last year?

New single-family home inventory in December was up 10% compared to a year earlier, reaching a level of 494,000 units. Additionally, completed ready-to-occupy inventory increased by 46% to a level of 118,000 units compared to the previous year.

Conclusion

New home sales ended the year on a positive note, with December showing an increase in sales compared to the previous month and a year earlier. Despite ongoing housing affordability challenges, solid demand and limited existing inventory have contributed to the growth in new home sales. The market continues to be cautiously optimistic about the building sector, especially with favorable macroeconomic conditions and a post-election policy reset that aims to eliminate unnecessary regulations. As we move into 2025, it will be interesting to see how the housing market evolves and if new home sales continue to show positive momentum.