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New Home Sales Near Post-Recession Peak

home-for-saleAfter a month-to-month dip in October [1], sales of new single-family homes November rebounded more than 5 percent nationally, according to the latest estimates by the U.S. Census Bureau and the Department of Housing and Urban Development [2] in November 2016's New Residential Sales Report [2] released Friday.

Sales of new single-family houses last month were at a seasonally adjusted annual rate of 592,000; October’s rate was 563,000. Moreover, November’s figures were 16.5 percent above what they were a year ago. November’s pace of sales was the second-highest for new-builds since the end of the recession.

According to HUD/Census Bureau, the median sales price of new houses sold in November was $305,400 and the average sales price was $359,900. The seasonally adjusted estimate of new houses for sale at the end of last month was 250,000, which means a tight five-month inventory, at the current sales rate.

Robert Dietz, chief economist and senior vice president for economics and housing policy at the National Association of Homebuilders [3], said that November’s upswing “is consistent with rising home builder confidence  [4]and an expectation of sales growth in 2017.”

Dietz also said that new home sales for November were nearly 13 percent higher than they were this time last year.

“Rising interest rates in 2017 will damper some growth for sales of new and existing home sales,” he said, “but favorable demographics, ongoing job creation, and rising wages will cause new home sales to continue to expand next year.”

He said that recent construction data has found a broadening of the mix of homes being constructed, and that “development will likely have an impact on median new home prices next year.”

Click here [2]to view the full New Residential Sales Report for November 2016 from HUD and the Census Bureau.