New U.S. Home Sales Fall 7 Percent in December

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New single-family home sales in the U.S. dropped at year end, after posting a slight decline in November, according to data released today by the Census Bureau.

New home sales reached a seasonally adjusted annual rate of 414,000 in December, dropping seven percent from the revised November rate of 445,000.

The figure, however, is 4.5 percent higher than the estimate of 396,000 in December 2012.

An estimated 428,000 new homes were sold in 2013, 16.4 percent higher than the 2012 figure of 368,000.

A report last week from the National Association of Realtors showed existing home sales reached the highest level since 2006.

The growth of the new home market has paused in the last couple of months. Housing starts in the U.S. dropped in December, marking the largest decline since April.

Similarly, home builder confidence fell in January, after reaching a record level in December.

Higher home prices have been noted as a reason for lower builder confidence. However, in December, the median sales price for new homes reached $270,000, lower than the $270,900 in November.

At the end of December, there were approximately 171,000 new homes for sale, representing a five-month supply at the current sales rate.