The US Department of Commerce was ecstatic about the recent news, revealing that December 2022 witnessed a significant upturn in new home sales – an incredible 2.3% jump from November, making it the highest growth rate in four months.
In December, new house sales in the country increased seasonally to 616,000. This level is lower than analyst expectations of 617 thousand; however, it marks a 4-month high and a 0.7% increase from November’s figure of 602 thousand. However, new house sales decreased by 26.6% on a year-over-year basis. Overall the trend indicates an upward movement for newly built houses even with last month is below expected levels.
High Interest and Mortgage Rates Affected Home Sales.
New home sales in the USA decreased by 16.4 percent in 2022 due to high mortgage interest rates and housing prices. The median sales price of the new houses that went on sale in the country last month increased by 7.8 percent compared to the previous year and rose to 442 thousand 100 dollars.
Encouraging news came from analysts, as new home sales in the US rose for a third consecutive month while mortgage interest rates remained steady. This suggests that the housing market, which has been negatively affected by extreme interest rate hikes, is finally beginning to start its expected growth.