Sales of new single-family houses in November were at a seasonally adjusted annual rate of 315,000, according to U.S. Commerce Department. It is the third consecutive monthly gain, although the latest figure is still below the 323,000 homes sold last year, which was the worst year for sales on record dating back to 1963, and it is less than half the 700,000 new homes that economists say should be sold to sustain a healthy housing market.
Sales of new single-family houses in November were at a seasonally adjusted annual rate of 315,000, according to U.S. Commerce Department. It is the third consecutive monthly gain, although the latest figure is still below the 323,000 homes sold last year, which was the worst year for sales on record dating back to 1963, and it is less than half the 700,000 new homes that economists say should be sold to sustain a healthy housing market.
The latest figure is 1.6 percent above the revised October rate of 310,000 and 9.8 percent above the November 2010 estimate of 287,000.
"While the numbers are still quite low on a historic basis, this upward trend indicates that the market is slowly finding its footing and bodes well for the months ahead," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB). "Our concern is that overly restrictive lending conditions for both builders and buyers will constrain this growth and postpone the arrival of a recovery in housing and the overall economy."
Regionally, new-home sales were mixed in November. The South and Midwest posted gains of 12.9 percent and 7.5 percent, respectively, while the Northeast and West posted respective declines of 26.3 percent and 16.9 percent. The inventory of new homes for sale fell 1.3 percent to 158,000 units in November, a new record low that represents a six-month supply at the current sales pace.
