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New Home Sales Soar in November Year-Over-Year12-26-16 | Economic News

New Home Sales Soar in November Year-Over-Year

Midwest Fuels 5.2 Percent Hike Versus October

The Midwest region and its nearly 44 percent gain propelled new home sales in November solidly higher, both compared to October and year-over-year. Sales in the West rose nearly 8 percent.

Sales of new single-family homes jumped 16.5 percent in November year-over-year, and came in 5.2 percent higher versus October, according to Census Bureau data. On a seasonally adjusted annual rate basis, 592,000 units were sold in the month, compared to 563,000 units in October, and 508,000 in November 2015.

Regionally, new home sales surged 43.8 percent in the Midwest, and increased 7.7 percent in the West. Sales were unchanged in the Northeast, and fell 3.1 percent in the South.

The median sales price of new houses was $305,400, and the average sales price was $359,900.

Spokespersons for the National Association of Home Builders offered positive, upbeat forecasts for 2017.

"New home sales showed growing strength in 2016, and builders expect more of the same next year," said Ed Brady, chairman of the National Association of Home Builders (NAHB). "A key to continued growth in 2017 will be to ensure that prospective, qualified first-time homebuyers have access to affordable home loans."

"The NAHB expects an increase in single-family home construction next year, fueled by a growing economy and solid job growth," said Robert Dietz, chief economist for the NAHB. "Moreover, builder confidence has risen on anticipation of reductions in regulatory costs, which is good news for home buyers and renters."