By Manuel Gutierrez, Consulting Economist to NKBA
Sales of new single-family homes jumped in November by 5.8 percent from October to an annualized rate of 640,000, the highest pace in three months. This increase, while exceeding October’s bump by 36,000 units, still puts November sales 14.8 percent lower than a year ago, when sales were running at an annual pace of 756,000.
- New home sales have tough numbers to beat, since the post-pandemic buying fever that peaked two years ago drove sales to 15-year highs.
- Sales declined 2 percent to 369,000 (annualized) in the South, which accounts for 58 percent of all sales in the U.S. Sales in the Northeast fell by 9 percent, to 43,000. Sales in the Midwest and West rose by 21 percent and 28 percent, respectively.
- The November spike was largely the result of an increase of 56,000 homes sold but not yet started, plus a small bump in those under construction. The number of completed new homes ready for occupancy actually fell by 26,000 units.
- Homes prices over $500,000 now account for 48 percent of all new homes sold, compared to 9 percent prior to 2015 and 16 percent in pre-pandemic 2020.
