Sales of new homes dropped in all U.S. regions during the last two months of 2018, according to a report released by Redfin.
Redfin said the year-over-year decline was most drastic in the Northeast, where new-home sales fell by 16.1 percent in December. The Northeast hasn’t experienced growth in new-home sales since January 2017.
“All around the country homebuyers were backing off at the end of last year due to high prices and high mortgage interest rates, and 2018 tax reform made it even more expensive to buy high-priced homes in high-tax states like Massachusetts, Connecticut and New York,” Redfin Chief Economist Daryl Fairweather said in a release. “New homes tend to be pricier than existing homes, which is one reason sales of new homes dropped off so much in the Northeast.”
According to the report, new-home sales for November and December dropped 2 percent and 13.4 percent in the Midwest; 12.3 percent and 16.1 percent in the Northeast; 2.9 percent and 10.3 percent in the South; and 8.6 percent and 13.4 percent in the West.
Redfin said the typical new home was on the market for 91 days, five days less than the year before. Existing homes spent a median of 43 days on market, two days less than the year before.