The housing market continues to show strength as new-home sales climbed again in December, reaching a seasonally adjusted annual rate of 698,000. This marks a 3.6% increase from November 2024 and a 6.7% rise from December 2023. With a total of 683,000 new homes sold in 2024—up 2.5% from the previous year—this upward trend signals continued momentum for the market in 2025.
While the median sales price of new homes sold in December increased to $427,000, the overall median price for 2024 stood at $420,100, lower than 2023's median of $428,600. More affordable inventory is fueling this growth, with 20% of December's sales occurring in homes priced below $300,000, up from 15% a year ago. Despite persistently high mortgage rates, new-home sales have remained strong.
The Northeast and Midwest experienced the most significant growth in new-home sales, with year-over-year increases of 25.9% and 40.3%, respectively. The South, which continues to lead the nation in total new-home sales, saw a modest annual increase of 0.5%, making up 60.6% of all new-home transactions. Meanwhile, the West bounced back from a slower November, posting a 20.3% month-over-month increase and a 6.9% year-over-year rise.
The supply of new homes for sale at the end of December reached 494,000 on a seasonally adjusted basis. This marks the fifth consecutive month of inventory growth, reflecting a 10% increase from December 2023. New construction homes now represent 30% of all available inventory, maintaining a steady share despite fluctuations throughout the year.
While months of supply dipped slightly from 8.9 to 8.5 due to higher sales activity, the market remains well-stocked and favorable for buyers. With steady inventory and strong completion rates, new-home buyers have more options than ever.
A promising development for homebuyers is the increase in move-in-ready homes. The share of completed homes available for sale remains at 25%, aligning with pre-pandemic levels. Meanwhile, the proportion of homes still under construction has declined to 53.8%. This shift allows buyers to tour and purchase homes that are already finished, reducing uncertainty and wait times.
The latest new-home sales data presents an encouraging landscape for buyers, who can benefit from a well-supplied market, competitive pricing, and more move-in-ready options. Additionally, builders are providing financial incentives, including mortgage rate buy-downs, which can offer relief from elevated borrowing costs.
With more affordable inventory and favorable conditions, now is a great time for homebuyers to explore new construction options. As the market heads into 2025, new-home sales are expected to remain a vital component of the housing sector's continued growth.
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