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New Home Sales Increase in November12-27-06 | News

New Home Sales Increase in November

WASHINGTON D.C. ?EUR??,,????'??+ Sales of new single-family houses in November were at a seasonally adjusted annual rate of 1.047 million according to the Commerce Department. This is 3.4 percent above the revised October rate of 1.013 million, but is 15.3 percent below the November 2005 estimate of 1.236 million.

?EUR??,,????'??This is a very good report, and is consistent with the idea that the rather abrupt downward correction in home sales from the unsustainable highs of 2005 has reached its end. Furthermore, inventories of unsold units are gradually being drawn down from their mid-year highs,?EUR??,,????'?? said David Seiders, chief economist of the National Association of Home Builders.

The median sales price of new houses sold in November was $251,700; the average sales price was $294,900. The seasonally adjusted estimate of new houses for sale at the end of November was 545,000. This represents a supply of 6.3 months at the current sales rate.

?EUR??,,????'??The data also confirm what our builder surveys have been telling us over the past several months?EUR??,,????'??+that buyer demand is firming up across many markets and that builders are looking forward to further improvements in sales activity in 2007,?EUR??,,????'?? Seiders said.

Sales last month increased in all parts of the country except the South, where they fell by 9.3 percent. Sales were up 22.5 percent in the Northeast, a rebound from a huge 35.5 percent drop in October. Sales rose by 22.4 percent in the Midwest and 19 percent in the West.