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New Home Sales Turn Back the Clock12-29-17 | Economic News

New Home Sales Turn Back the Clock
AP Says it Is the Largest Monthly Gain in 25 Years

The U.S. housing market saw an impressive jump in new home sales for Nov. 2017. The U.S Census Bureau reported a 17.5 percent increase month over month.

The Associated Press is reporting that new U.S. home sales tallied the largest monthly expansion in 25 years, with homes on the West Coast selling rapidly.

"The South and West accounted for the bulk of November's increase, with sales in the West surging 31.3 percent," said Mark Vitner, senior economist at the Wells Fargo Economics Group.

Over 700,000 new homes were sold in Nov. 2017. This was 17.5 percent above the October rate. However, the previous three months' sales were revised lower.

The median sales price in November was $318,700, according to the U.S. Census Bureau.

With the large increase in home sales, Vitner points out there are still challenges in the housing market.

"The greatest limitation to home sales continues to be a lack of inventory. With few completed homes available, sales of homes not yet started accounted for most of Novembers' increase," Vitner said.

It's normally difficult to draw conclusions about the state of the housing market during this time of the year, because the pace is typically slow.

The U.S Census Bureau will release more data regarding new housing sales on Jan. 25, 2018.