New-home sales surged to a 10-year high in November, with sales of new, single-family homes up 17.5 percent to 733,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). The average new-home sales price was $377,100, while the median was $318,200. New-home listing inventory was 283,000—4.6 months supply.
The particularly strong growth rate was due to a large downward revision for the October estimate (624,000, originally 685,000), according to a report from the National Association of Home Builders (NAHB). However, the November sales rate was the fastest pace since July 2007. The expansion is supported by ongoing job growth and improving owner-occupied household formations, as well as tight existing home inventory.
NAHB stated despite some volatility in the month-to-month sales figures, November marks the seventh month in 2017 at an annual sales pace of more than 600,000. New home sales through November are running 9.1% higher than this time in 2016, in line with NAHB’s forecast. The volatility in the data series suggests some pullback is likely in the December and January reports.
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