New Home Sales Slipped in December but Surged for the Year

New home sales dropped to a seasonally adjusted annual rate of 369,000—7.3 percent below the revised November rate of 398,000, but 8.8 percent above the December 2011 estimate of 339,000, according to data released by the Department of Commerce on Thursday.

Overall, an estimated 367,000 new homes were sold in 2012, a 19.9 percent increase from the 2011 figure of 306,000.

Regionally, new homes sales for December were mixed. The Midwest increased to a seasonally adjusted annual rate of 21.3 percent from November but was -1.7 percent below the annual rate of December 2011. The Northeast rate dropped -29.4 percent in December but was 20 percent above year-over-year. The Midwest grew to a seasonally adjusted annual rate of 21.3 percent from November but was down -1.7 percent from December 2011. The South and West were both down for the month by -8.4 percent and -11.1 percent, respectively, but the South gained 15.6 percent year over year while the West dropped -1.2 percent.

The median sale price for new homes sold in December was $248,000. Approximately 151,000 new homes were for sale at the end of the period—a supply of 5.5 months at the current sales pace.