Sales of new single-family houses in December are estimated at a 698,000 annual rate, compared to the revised 674,000 (previously 664,000) reported for November, and 627,000 in October. This is 3.6 percent higher than November's number and +6.7 percent when compared to the December 2023 estimate of 654,000.

In 2024, an estimated 683,000 new homes were sold, 2.5 percent above the 2023 figure of 666,000.

December's median sales price of new houses sold was $427,000, compared to $402,600 in November. The average sales price was $513,600.

The inventory of new houses for sale rose from 490,000 at the end of November to 494,000 at the end of December. The months' supply dipped from 8.9 months to 8.5 months at the current sales rate.

Despite a steady rise in 30-year mortgage rates to top 7 percent in December, new home sales are seen at a 672,000 annual rate after rebounding to 664,000 in November from a weak 627,000 in October.

New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as new home sales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio. Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once the home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, new home sales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the new home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.