US New Home Sales Fall in December, Inventory Declines

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Sales of new U.S. single-family homes fell 1.7% in December to a seasonally adjusted annualized rate of 745,000 units, but builders made progress in reducing an inventory bloat, potentially allowing them to break ground on more new housing projects. New home sales account for a small share of U.S. home sales and tend to be volatile on a month-to-month basis.

Why it matters

The housing market is a key indicator of economic health, and new home sales data provides insight into the supply and demand dynamics. Declining inventory could signal an opportunity for increased construction activity, which could boost the overall housing market.

The details

New home sales dropped 1.7% in December to a seasonally adjusted annualized rate of 745,000 units, but increased to a rate of 758,000 units in November from 656,000 in October. New housing inventory fell to 472,000 units in December from 485,000 units in November, and the inventory of homes under construction was the lowest in nearly 4-1/2 years. At December's sales pace, it would take 7.6 months to clear the supply of new houses on the market, down from 7.7 months in November. The median new house price increased 4.2% to $414,400 in December from a year earlier.

• New home sales data for December 2026 was released on February 20, 2026.
• New home sales increased to a rate of 758,000 units in November 2026 from 656,000 in October 2026.

What’s next

The housing market could get a lift from declining mortgage rates, with the average rate on the popular 30-year fixed-rate mortgage declining to 6.01% this week, the lowest level since September 2022.