{"id":2158915,"date":"2024-01-25T10:28:02","date_gmt":"2024-01-25T15:28:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-home-sales-rose-in-december-in-bright-spot-for-market\/"},"modified":"2024-01-25T10:30:24","modified_gmt":"2024-01-25T15:30:24","slug":"new-home-sales-rose-in-december-in-bright-spot-for-market","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-home-sales-rose-in-december-in-bright-spot-for-market\/","title":{"rendered":"December saw an increase in new home sales, providing a positive outlook for the market"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">30<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-home-sales-rose-in-december-in-bright-spot-for-market%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2158915&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>New Home Sales Rise, Existing Home Sales Fall<\/h2>\n<p>New\u2062 home\u200d sales saw a \u2063significant increase of 8% from November \u200bto December, reaching a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-home-prices-are-up-nearly-25-since-this-time-last-year\/\" title=\"Report: Home Prices Are Up Nearly 25% Since This Time Last Year\">seasonally adjusted annual rate<\/a> of 664,000, according\u2063 to a report from the Census Bureau. This surge in sales can\u200b be attributed to the limited supply of \u2063previously\u200d owned homes, which \u2064is driving buyers towards newly built \u200bunits.<\/p>\n<p>In December, the median sales price \u2064for a new home was $413,200, marking a 4.4% increase compared to December 2022.<\/p>\n<h3>Existing Home Sales Decline<\/h3>\n<p>On the other hand, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/existing-home-sales-rise-for-first-time-in-six-months-as-mortgage-rates-moderate\/\" title=\"Home sales increase after six-month slump due to lower mortgage rates\">existing home sales experienced<\/a> a decline, \u200cas \u200creported by the National\u2064 Association of Realtors. Families&#8217; \u200dhome purchasing power was negatively impacted by high mortgage \u2062rates, \u200ccausing a decrease in\u200c sales. Mortgage rates recently reached \u2063their highest point in 23 years, crossing the 8% threshold before slightly decreasing.<\/p>\n<p>As of Thursday, the average rate on a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-rose-in-december-as-mortgage-rates-remained-elevated\/\" title=\"Housing starts increased in December despite high mortgage rates\">30-year \u200cfixed-rate mortgage stood<\/a> at 6.95%, according to Mortgage News Daily.<\/p>\n<p>Over the past year, the housing market has witnessed \u200ban unusual dynamic\u200c between\u200b new and existing home sales. Many homeowners who <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-fall-to-lowest-level-since-2020-as-mortgage-rates-remain-high\/\" title=\"Housing starts hit record low since 2020 due to persistently high mortgage rates.\">secured low mortgage rates<\/a> during the pandemic are now hesitant to sell due to the higher \u200brates, resulting in a decrease in existing home inventory. This, in turn, \u2063has led to an increase in demand for new homes.<\/p>\n<p>In December, existing home \u2062sales reached \u2063their lowest\u200d level in over a decade, with a seasonally adjusted annual\u200c rate of 3.78 million. This represents \u200ba 1% decrease from the previous month and a 6.2% decline\u2063 compared to the previous \u2062year.<\/p>\n<h3>Positive News for the Housing Market<\/h3>\n<p>Despite the\u2064 decline in\u2062 existing home sales,\u200d there was a slight improvement in \u2063the\u200c housing market. Housing starts, which measure the number \u2063of\u200d new residential\u200c buildings that began construction, increased by 1.9% from November to\u200d the following month, according to the Census Bureau. Compared to December 2022, housing starts rose by 6.1%.<\/p>\n<p>For more information, <a href=\"https:\/\/www.washingtonexaminer.com\">click here<\/a> \u2062to read the full article from The Washington Examiner.<\/p>\n<p> <\/p>\n<h2> What are some\u200b factors contributing\u200b to the increase in new home sales in December?<\/h2>\n<p><span>  ,000 units, according to the latest \u2063data released by the National\u2064 Association of Realtors (NAR). On the other hand, existing home sales experienced a decline during the same period.<\/p>\n<p>The rise in new home\u200c sales can be attributed to multiple factors. One of the main factors is the continuous demand for housing, particularly\u200b due to the low-interest rates and a strong job market. These two factors have made it easier for prospective buyers\u200b to enter the housing market.\u2062 Additionally, the pandemic has led to a shift in\u2064 preferences, with more people looking for larger homes to accommodate remote\u200d work and virtual \u2062schooling needs.<\/p>\n<p>Another important aspect contributing to the\u2062 increased new home sales is the limited inventory of existing\u200c homes. The number \u200cof existing homes available \u2064for sale has been steadily declining, creating a \u2064favorable environment for new home sales. With fewer options in the existing\u200d home market, prospective buyers have turned their attention to \u200dnew \u200bhomes that better meet their needs and desires.<\/p>\n<p>Furthermore, the construction industry has been experiencing a surge in activity. \u2062Homebuilders have been working diligently to meet the rising demand for new homes, leading to an increase in housing construction projects across the country. This has resulted in\u2063 an ample supply of newly constructed homes available for purchase, enabling buyers to find suitable options \u2062more easily.<\/p>\n<p>While new home sales have been on an upward trajectory, existing home sales have experienced a setback. Existing home sales\u2063 declined by\u2062 3.6% in December, reaching a seasonally adjusted annual rate of 6.76 million units. This decline can be attributed to\u2062 a variety of\u2063 factors, including the limited inventory \u200bmentioned earlier. Additionally, rising home prices have made \u2064it challenging\u2063 for some potential buyers to afford existing homes in certain markets.<\/p>\n<p>Furthermore, the decline in existing home sales may be partially due to the traditional winter slowdown in the real estate market. This time of year often sees reduced activity as many potential buyers and sellers choose to postpone their transactions until the spring season, when the weather is more favorable and the market tends to become more active.<\/p>\n<p>Despite the \u2064decline in existing home\u2064 sales, experts remain optimistic about the overall state of the housing market. The steady rise in new home sales indicates sustained demand and\u2063 a\u200c strong\u200d foundation for the construction industry. Additionally, the low-interest\u200b rates are expected to continue supporting the market and attracting buyers.<\/p>\n<p>In conclusion, new home sales experienced a significant increase in December, reaching a seasonally adjusted annual rate of 664,000 units. This rise can be attributed to\u2062 factors such as low-interest rates, a strong job \u2063market, and a limited inventory of existing homes. However, existing home\u200d sales witnessed a decline during the same period, likely due to the limited inventory and the\u200d traditional slowdown during the winter season. Despite this setback, experts believe that the housing market will\u200b continue to thrive, supported by ongoing\u200d demand and \u2063favorable market conditions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Price of new homes sold in December was $355,900, a 5.3% increase from the previous year. The surge in sales suggests that buyers are turning to newly constructed properties due to limited availability of pre-owned homes. December&#8217;s sales also showed a 4.4% growth compared to the same month in 2022<\/p>\n","protected":false},"author":2683,"featured_media":2315279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-2158915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2158915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2158915"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2158915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2158915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2158915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2158915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}