Sales of new single-family homes increased 12.4% in November; however, this is 14% below the November 2020 estimate, according to the U.S. Census Bureau and the Department of Housing and Urban Development.
Estimates reveal that new-home sales were at a seasonally adjusted annual rate of 744,000 for November. This is down from the revised October rate of 662,000 and significantly below the November 2020 estimate of 865,000.
“The new home sales report released today by the Census Bureau showed a strong rise in new-home sales for the month of November, increasing 12.4% over the month to a seasonally adjusted annual pace of 744,000 units,” said Fannie Mae chief economist Doug Duncan. “However, the strength was less impressive than it may appear due to an almost-as-large downward revision to October’s new sales number. Still, November sales were the highest since last April and is consistent with other indicators showing a strong end to the year for housing.”
The median sales price of new houses sold in November was $416,900, and the average sales price was $481,700.
The seasonally adjusted estimate of new homes for sale was 402,000 at the end of November, representing a supply of 6.5 months at the current sales rate.
“The report also indicated a continuing rise in the total number of homes for sale at the end of the month, moving up 2.6% to the highest level since 2008. Many of these homes have not yet been started, reflecting home builders’ ongoing struggles to keep up with demand in the face of supply chain difficulties and labor scarcity,” added Duncan. “However, the continued increase in homes being put onto the market points to a stronger pace of sales in coming months as home builders work through their construction backlogs, freeing up capacity for a larger order book. Furthermore, with mortgage rates remaining historically low, along with the ongoing lack of adequate existing homes for sale, we believe demand for new-home purchases should remain strong in the near term. Therefore, we expect continued new-home sales acceleration through the first half of next year.”
