New-Home Sales Surge Amid Falling Mortgage Rates, Construction Lags Behind

Despite the increase in sales, only 17.9% of new homes are ready for move-in, with the majority still under construction.

New-home sales increased by 8% in December due to falling mortgage rates, but only 17.9% of these homes are ready for move-in, with the majority still under construction.
Despite the construction lag, homebuyers are purchasing available homes, causing new home inventory to fall below November's levels.
The average 30-year mortgage rate fell to a six-month low in December, averaging 6.32%, encouraging more buyers to enter the market.
The National Association of Homebuilders expects construction and demand to increase in 2024 as consumers realize ultra-low mortgage rates aren't returning.
The median sales price for new homes declined slightly to $413,200 in December, while the average price increased slightly to $487,300.