Sales of new homes increase in November
Highest totals in more than 2 years
Sales of newly-built, single-family homes rose in November to the highest level since April 2010, the National Association of Home Builders (NAHB) said in a recent report.
According to the NAHB, new single-family home sales increased 4.4 percent month-over-month to an annual rate of 377,000 units. This is the highest seen since that April 2010 time period that coincided with the expiration of the federal home buyer tax credit.
“New-home sales are gradually picking up momentum as the economy improves,” Barry Rutenberg, chairman of the NAHB, said in a statement. “Prospective home buyers who have been sitting on the fence for years are moving back into the market due to continuing low mortgage interest rates, attractive pricing and the improving economy.”
Regional results mixed in November
Two of four major U.S. regions saw increased new home sales in November, while the other two showed declined.
Sales of new single-family homes increased 21.1 percent month-over-month in the South and 12.5 percent monthly in the Northeast.
However, new home sales dropped 17.8 percent on a monthly basis in the West and fell 12.5 percent month-over-month in the Midwest.
Despite the mixed regional results in November, overall gains are expected as 2013 progresses.
“We’re projecting a total of about 365,000 new-home sales in 2012, an increase of almost 20 percent over the previous year,” David Crowe, NAHB Chief Economist, said in a statement. “The year ahead will see a similar gain as more people who have been sitting on the sidelines decide that it is time to purchase a new home.”