New home sales see increase in November

Newly-built, single-family home sales increased 5.2 percent in November.

This is a seasonally-adjusted annual rate of 592,000 homes, according to the National Association of Home Builders, based on recently-released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“New home sales showed growing strength in 2016 and builders expect more of the same next year,” said NAHB Chairman Ed Brady in the press release. “A key to continued growth in 2017 will be to ensure that prospective, qualified first-time home buyers have access to affordable home loans.”

Across the country, new home sales rose 43.8 percent in the Midwest, and 7.7 percent in the West. In the Northeast, sales stayed the same, but decreased 3.1 percent in the South.

“NAHB expects an increase in single-family home construction next year, fueled by a growing economy and solid job growth,” said NAHB Chief Economist Robert Dietz in the press release. “Moreover, builder confidence has risen on anticipation of reductions in regulatory costs, which is good news for home buyers and renters. However, the pace of construction will continue to be restricted by shortages of lots and labor in some markets.”

The median sales price of new houses sold was $305,400, while the inventory of new homes for sale in November was 250,000. This is a 5.1-month supply at the current pace of sales, according to the NAHB.