New US home sales fell significantly in December

Deal volume dropped more than 10% month-over-month: Commerce Department

New York /
Jan.January 26, 2017 01:55 PM

Sales of newly-built U.S. homes fell sharply between November and December, hitting their lowest level in nearly a year.

The purchases of new, single-family homes dropped 10.4 percent month-over-month to a seasonally adjusted annual rate of 536,000, the Wall Street Journal reported, citing Commerce Department data. That was the slowest monthly sales pace since February and the biggest month-over-month drop since March 2015, according to the Journal.

The chief economist at Nationwide Insurance told the paper the fall was “a shocker.” However, he said home sales are volatile throughout winter and he expects new-home sales to pick up in 2017.

Sales of new homes spiked in November, as buyers rushed to sign contracts ahead of rising interest rates.

Around 563,000 new homes sold last year, a 12 percent jump from 2015, an indication of broad improvement across the market, according to the Journal. Sales of new homes — which represent about 10 percent of the market across the country — are still well below where they were during the housing boom of the 2000s. [WSJ]Miriam Hall


Related Articles

arrow_forward_ios
Investment Sales, Federal Reserve, Interest Rates, Real Estate Finance, Jay Powell
What the Fed’s latest rate hike means for commercial real estate
What the Fed’s latest rate hike means for commercial real estate
New York Community Bank CEO Thomas Cangemi
NYCB slashes 10% of staff as resi mortgages slump
NYCB slashes 10% of staff as resi mortgages slump
Seth Weissman, Financing
Urban Standard wants to rescue property owners from high interest rates
Urban Standard wants to rescue property owners from high interest rates
cliffside, building, money
$16B in CMBS loans nearing cliff in NYC
$16B in CMBS loans nearing cliff in NYC
New Orleans Pelican CJ McCollum and 869 South Stonehenge Terrace in West Linn, Oregon (Google Maps, Getty)
New Orleans Pelican CJ McCollum lists Oregon home for $3.5M
New Orleans Pelican CJ McCollum lists Oregon home for $3.5M
A photo illustration of Arizona Cardinals' owner Michael Bidwill and 7451 N Las Brisas Lane in Paradise Valley (Getty, Google Maps)
Arizona Cardinals owner unloads Paradise Valley mansion
Arizona Cardinals owner unloads Paradise Valley mansion
Home Sales, Housing Market, Redfin, Concessions
With buyers holding the cards, more sellers sweeten resi deals
With buyers holding the cards, more sellers sweeten resi deals
(Getty)
Pending sales dip to second lowest on record
Pending sales dip to second lowest on record
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...