Housing Market Update | Milwaukee Real Estate

Market Update

New Home Sales: New Sales Slipping Further from Peak

• There were 616,000 new home sales nationwide in December (SAAR), up 2.3% from November and down 26.6% from December 2021, according to the U.S. Census Bureau.
• The median sales price of new houses sold in December was $442,100.
• The seasonally-adjusted estimate of new houses for sale at the end of December was 461,000, a supply of 9 months at the current sales rate.

Residential Investment Continued to Hold Back the US economy in the Fourth Quarter

• Real Gross Domestic Product (RGDP) increased at a seasonally adjusted annual rate of 2.9 percent in the fourth quarter of 2022. Real GDP increased 2.1 percent in 2022.
• Residential fixed investment decreased by 10.7 percent in 2022 as new single-family construction and brokers’ commissions fell.
• Final sales to domestic purchasers rose only 0.8 percent in the fourth quarter – highlighting weakness in the domestic economy. For the year, final sales to domestic purchasers increased 1.7 percent compared to 6.7 percent in 2021.