New Home Sales Ticked Up In December

Sales of newly built homes rose in December to a seasonally-adjusted annual rate of 842,000 in December, the Census Bureau reported Thursday.

That represents around a 15 percent increase compared with a year ago. It is 1.6 percent above the downwardly-revised pace of 829,000 in November.

Economists polled by Econoday had forecast home sales rising t0 an annual pace. of 875,000.

Home sales boomed in the Midwest, rising 30.6 percent. increase in the Midwest. Sales in the Northeast dropped 6.1 percent and sales in the South, the biggest market for new homes, fell 5.1 percent.

Inventory rose slightly to a 4.3-month supply but remains below that six-month smark generally considered indicative of a balanced market. The median price of new homes for sale was $355,900, up eight percent from a year earlier.