COMPLETED CONSTRUCTION

December new homes sales jumped 3.6% M-o-M to 698,000 annualized units. That reduced builder inventory from 8.7 months in November to 8.5 months. However, it’s taking homebuilders longer to sell completed homes, 2.8 months in December versus 2.5 months in November. It’s because sales of completed units fell 10.1% M-o-M, but sales of units under construction soared 19.6%, and of unstarted houses jumped 20.3%. Completed homes are currently too costly.