Economic Update: Housing Market Insights
Sales of new single-family homes in the United States rose more than anticipated in December, signaling a rebound in housing market activity towards the end of 2024. However, the ongoing increase in mortgage rates continues to present challenges.
According to the U.S. Department of Commerce, new home sales climbed by 3.6 percent, reaching an annualized rate of 698,000 units last month, adjusted for seasonal variations.
Revised sales figures for September were reported at 674,000 units, a revision from the previously reported 664,000 units.
Economists surveyed had predicted new home sales to hit approximately 675,000 units, as these sales account for about 15 percent of total housing unit sales in the United States.
It is important to note that new home sales are recorded upon the signing of contracts, which can lead to fluctuations in monthly data. Year-over-year, sales experienced a 6.7 percent increase in December.
In total, approximately 683,000 new homes were sold in 2024, reflecting a 2.5 percent rise compared to 2023.
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