New home sales in the United States climb to a 9-month high in December

Sales of new single-family homes in the United States jumped to a nine-month high in December, supported by a severe shortage of existing homes.

The U.S. Department of Commerce said Wednesday that new home sales rose 11.9 percent, to an annual rate of 811,000 units last month, the highest level since March. The ministry revised its sales pace for the month of November to 725,000 units from the previous reading of 744,000 units.

Economists surveyed by Reuters had expected new home sales, which account for more than 10% of total U.S. home sales, to rise to one media of 760,000 units.

Year-on-year, new home sales fell 14% in December. It peaked at 993,000 units in January last year, the highest since the end of 2006. Around 762,000 new homes were sold in 2021, in a decrease of 7.3% compared to 2020.

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