New-home sales near 5-year high in November
Dec. 30, 2013 – New-home sales decreased slightly in November after a significant upward revisions in October’s sales data, NAFCU Research Assistant Doug Christman said in a Macro Data Flash Friday.
October’s new-home sales were revised to 474,000 annualized units, marking the highest sales activity in the last five years. Sales were down 2.1 percent in November, declining to 464,000 annualized units, but November sales still represent a 16.6 percent uptick from last year and the second-highest sales pace after October.
“Rising mortgage rates over the summer put downward pressure on new home sales, but activity increased when interest rates moderated in October,” Christman wrote. “Tight inventories continued to put upward pressure on new home prices and constrain overall activity, but building permits rose to the highest level in more than five years in October, indicating expectations for increased future sales.”
Two regions had increases in new-home sales – 31.1 percent in the West and 15.2 percent in the Northeast – but sales fell 26.6 percent in the Midwest and 9.1 percent in the South. The number of months of available inventory in November was 4.3, compared to a revised 4.5 months of supply in October.
The median new-home price in November was $270,900, non-seasonally adjusted. The median price was $259,200 in October.
NAFCU Macro Data Flash