New-home sales roar to a fresh high as builders feed a market starved for supply

• December 22, 2017
• realestatelife
• Announcements, Business & Markets, Real Estate, Real Estate Finance

New-home sales were at a seasonally adjusted annual rate of 733,000 in November, the Commerce Department said Friday.

Sales of newly-constructed homes throttled past expectations as the housing recovery picked up steam. November’s number was 17.5% above a downwardly-revised October and 16% higher than a year ago. That easily beat the consensus of a 658,000 selling pace.

The median price for a new home in November was $318,700, about 1% higher than $315,000, the price a year ago.

At the current pace of sales, it would take 4.6 months to exhaust available supply, still lean compared to long-time averages.

Because the government’s monthly reports on new-home sales are based on small samples of data, they often undergo extensive revisions. Many economists find it more useful to look at trends spanning several months for a view of the market. For the year to date, sales are 9.1% higher compared to the same period last year, a metric that’s risen as the year has gone on.