New single-family home sales jump by 4.3%

Dive Brief:

  • The Commerce Department said Wednesday that sales of new single-family homes jumped by 4.3% to a seasonally adjusted annual rate of 490,000 in November. The median price of $305,000 of new homes sold in November is a 0.8% bump from last year.
  • From last November, new-home purchases were up 9.1%. Sales increased 14.5% Jan.-Nov. of 2015 when compared with that 2014 period. Trending down is the pace of new-home sales. That number is averaging 467,000 over the last three months against 517,000 in the first three months of the year.
  • The report also said, that at the current sales price, there were 5.7 months of newly constructed homes available for sale in November. That is a small dip from the 5.8-month supply in October.

Dive Insight:

As the year comes to a close, the government and industry analysts remain positive following the ups and downs of each month. 

Last week, Commerce said it has been a solid year and Federal Reserve Chairwoman Janet Yellen said, "demographics would point to considerable upside for residential investment."

A MarketWatch survey of economists had forecast a rate of 505,000, just 15,000 shy of the November rate. But, Jim O’Sullivan, chief U.S. economist for High Frequency Economics, wrote that the data continue to show improvement.

 

Recommended Reading

The Wall Street Journal: U.S. New-Home Sales Rose 4.3% in November


Top Image Credit: NBCNews.com

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Residential Building