New home sales increased to a seasonally adjusted annual rate of 744 thousand in December 2021, though yearly sales remained 7.3% below 2020 rates, according to the CalculatedRisk Newsletter. New home sales have steadily declined year-over-year after peaking during the initial months of the COVID-19 pandemic, but increased housing inventory could give buyers more opportunities in 2022. The current inventory of homes under construction is at 263 thousand, the highest since 2007.
The months of supply decreased in December to 6.0 months from 6.6 months in November.
The all-time record high was 12.1 months of supply in January 2009. The all-time record low was 3.5 months, most recently in October 2020.
This is at the top of the normal range (about 4 to 6 months of supply is normal).
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