U.S. Housing Market Ends 2024 on a High

Sales of new U.S. single-family homes rose significantly in December 2024, signaling a strong end to the year for the housing market. Despite rising mortgage rates, new home sales increased, backed by a better-than-expected November rebound and robust residential investment.

Sales of new U.S. single-family homes exceeded expectations in December, marking a strong finish to 2024 for the housing market. The Commerce Department's report on Monday highlighted an impressive rebound from November's figures, which were revised upward to 674,000 units.

The rise in new home sales to a seasonally adjusted annual rate of 698,000 units in December suggests renewed momentum, even as rising mortgage rates offer challenges. The demand for newbuilds continues to grow, with new home sales up 6.7% year-on-year and 2.5% compared to 2023.

High mortgage rates have put pressure on the market, yet tight inventory of previously owned homes has favored new home sales. With the Northeast seeing a 41.7% surge and the Midwest experiencing declines, builders are focusing on more affordable housing options to attract buyers.

(With inputs from agencies.)