Sales of new single-family homes topped one million units in 2003, establishing a new record high for the third consecutive year, according to the U.S. Commerce Department.
“The numbers, while amazing, should not be a surprise to most builders,” said Bobby Rayburn, president of the National Association of Home Builders. “The sales pace has been excellent throughout the last six months, primarily fueled by low mortgage rates and strong house price performance, and the market fundamentals are in place for this pace to continue into early 2004.”
Total new single-family home sales for 2003 reached 1.085 million, up 11.5 percent from the previous annual record of 973,000, set in 2002. For December alone, new home sales hit a seasonally-adjusted annual rate of 1.06 million units, down 5.5 percent from November’s upwardly-revised pace of 1.117 million units.
“The sales pace was strong throughout the fourth quarter, and while we anticipate a slight decline in 2004, it is predicated on a projected rise of mortgage rates as the year progresses, to 6.5 percent by year-end,” said NAHB Chief Economist David Seiders. “However, interest rates are currently lower than had been expected, and the rates are not projected to move up in the near future. Consumer confidence in housing is still strong, and housing continues to be an important contributor to our nation’s economy.”