New home sales rise in November as consumer demand remains strong – RISMedia

New home sales rose in November, driven by strong buyer demand, low existing home inventory and an expected increase in mortgage interest rates, according to the latest Commerce Department data.

Key details:

  • Sales of newly built single-family homes in November rose 12.4% to a seasonally adjusted annual rate of 744,000 from a revised downward reading in October.
  • New home sales fell 14% year-on-year.
  • Inventory remains stable at a 6.5 month supply, with 402,000 new single-family homes for sale, up from 290,000 in November 2020.
  • The median selling price continued to rise to $ 416,900 from the median selling price of $ 408,700 posted in October, and increased 18.8% year-on-year.

Regional distribution from one year to the next:

Northeast: -1.3%
Midwest: -5.3%
South: -4.5%
West: -12.5%

What the industry is saying:

“Our members are seeing strong buyer traffic as continued low mortgage rates help fuel sales. However, builders still grapple with major supply chain issues and soaring material costs, leading to construction delays. ” – Chuck Fowke, President, National Home Builders Association

“Despite the increase in sales, housing affordability remains a major concern. With building material prices rising, the challenge for builders in 2022 will be coping with higher input costs while ensuring home prices remain within the reach of U.S. homebuyers. – Danushka Nanyakkara-Skillington, Assistant Vice President of Forecasting and Analysis, National Association of Home Builders

“New home sales improved for a third consecutive month as the housing market maintains its strength. New home starts have also increased this month, as many factors continue to align to make the sales market robust, including low interest rates and families looking for more. space for home work. November is historically a slower month for sales due to the Thanksgiving holiday, so continued growth this month continues to reflect buyer optimism and predicts a strong year-end. Kelly Mangold, RCLCO Real Estate Consulting

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