In November, new home sales in the U.S. saw a significant recovery, as reported by the Commerce Department. This resurgence comes after a notable decline in sales the previous month. Specifically, new home sales rose by 5.9% in November, reaching an annualized figure of 664,000, reversing from a 14.8% drop to 627,000 (revised) in October.
Economists had anticipated a 6.6% rise, predicting sales to reach an annual rate of 650,000, higher than the originally reported 610,000 for the preceding month. The increase in new home sales was primarily driven by considerable gains in the Midwest and South, with sales climbing 17.3% and 13.9%, respectively.
In contrast, the West experienced a 7.5% decline, while the Northeast saw a dramatic fall of 41.0% in new home sales. Additionally, the median sales price of new homes in November decreased to $402,600—reflecting a 5.4% drop from $425,600 the previous month and a 6.3% decline compared to $429,600 in the same month of the previous year.
By the end of November, there were 490,000 new houses available on the market, equating to an 8.9-month supply at the current sales pace. Though this is a decrease from 9.2 months in October, it's a slight increase from 8.8 months in November of the prior year.
Meanwhile, last Thursday, the National Association of Realtors released data indicating a substantial rise in existing home sales for November. Existing home sales jumped by 4.8%, reaching an annual rate of 4.15 million—up from a 3.4% increase to 3.96 million in October. This increase surpassed economist expectations, which were at a 2.8% increase, projecting sales to hit an annual rate of 4.07 million. As a result, existing home sales have now reached their highest level since March's annual rate of 4.22 million.
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