New single-family home sales in the United States fell 1.7% in December as inventory slumped.
Sales were at a seasonally adjusted annual rate of 745,000 during the month, according to the U.S. Census Bureau and Department of Housing and Urban Development. This is also a 3.8% decline year-over-year.
"An estimated 679,000 new homes were sold in 2025. This is 1.1 percent below the 2024 figure of 686,000,” the agencies wrote.
Most new houses sold during December were in the South, with sales up 9% to 430,000 units. The Midwest also reported a 31.7% increase in sales to 108,000 units, while sales in all other regions declined.
November’s sales were 758,000, up 15.5% from October. These figures were delayed due to the 43-day government shutdown in October and November.
New single-family housing inventory at the end of December was 472,000, down 2.7% from November. This is a supply of 7.6 months at current sales rates, the agencies said.
The U.S. House of Representatives passed a new housing affordability package earlier in February in a bid to increase supply, which would cut zoning and regulatory restrictions on building new homes. The bill will now be considered by the Senate, which advanced similar measures under defence spending legislation in December.
The National Association of Realtors also said last week that pending home sales fell 0.8% in January, largely due to insufficient supply growth.
The U.S. median sales price for new homes increased 4.2% to US$414,400 in December, but dropped 2% year-over-year.
