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New Home Sales Surge in December: What It Means for Stocks and the Economy šŸ”šŸ“Š

New home sales hit a seasonally adjusted annual rate of 698,000 in December 2024, up 6.7% year-over-year.

The housing market saw a strong close to 2024 with 698,000 new homes sold in December, a 6.7% year-over-year increase. Here’s what you need to know:

Key Highlights:

  • Sales Volume: An estimated 683,000 homes were sold in 2024, up 2.5% from 2023.

  • Prices: Median sales price hit $427,000, with the average price at $513,600.

  • Inventory: At the end of December, there were 494,000 homes for sale, equating to an 8.5-month supply.

Market Implications:

  1. Builder Stocks: Homebuilders like D.R. Horton and PulteGroup are well-positioned to benefit from rising demand.

  2. Interest Rates: Strong sales may push the Fed to maintain higher rates longer, impacting affordability.

  3. Economic Health: Housing is a leading indicator, and strong demand signals resilience in consumer spending.

Why It Matters:
New home sales are more than just numbers—they’re a window into economic strength and consumer confidence. Whether you’re an investor or a prospective buyer, these trends impact your wallet and your future.

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