Housing sales and marketing also broke records throughout the fourth quarter, with nearly 6 million new and existing homes sold on a seasonally adjusted annual basis in December. Inventories are at all-time low levels. The new homes inventory at the end of the fourth quarter represents 3.7 months of sales. A new monthly low of 3.6 months' supply of new homes was set in November. The inventory of existing homes was at an all-time low in December and represents 3.8 months of sales.
Prices are fairly stable.
Even when adjusted for quality change, the price of new homes increased only 1 percent from the third quarter and 4 percent from last year. Placements of new manufactured homes were at a seasonally adjusted annual rate of 332,000 units in the third quarter, up 4 percent from the second quarter and up 14 percent from the third quarter of 1997. Builders ended the year optimistically. The National Association of Home Builders' housing market index broke records and averaged 76 points during the fourth quarter, up 5 points from the third quarter and up 18 points from a year ago. These results are the consequence of a very robust economy featuring very low unemployment rates, stable prices, income growth, and low interest rates.