New Home Sales Increased 10% In 2019

New numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show sales of newly built single-family homes rose 10.3 percent in 2019 over year-before levels. The improvement is good news for the housing market, as it points to rising buyer demand. But, though sales were up last year, the majority of those sales were concentrated in higher price ranges. For example, in December, just 10 percent of new home sales were homes priced below $200,000. That's an indication that there's still a need for more affordable new-home inventory. Currently, there's a lack of entry level homes available for sale, which has made it more difficult for first-time buyers to enter the market. However, as more homes are built in affordable price ranges, it'll help balance inventory levels, lower competition among buyers, and stabilize home prices. As it is, the median sales price of new homes sold in December was $331,400. The average sales price was $384,500. (source)

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