Sales of newly built, single-family homes rose 5.2% in November to a seasonally adjusted annual rate of 592,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
“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) and a home builder and developer from Bloomington, Ill. “A key to continued growth in 2017 will be to ensure that prospective, qualified first-time home buyers have access to affordable home loans.”
“NAHB expects an increase in single-family home construction next year, fueled by a growing economy and solid job growth,” said NAHB Chief Economist Robert Dietz. “Moreover, builder confidence has risen on anticipation of reductions in regulatory costs, which is good news for home buyers and renters. However, the pace of construction will continue to be restricted by shortages of lots and labor in some markets.”
The inventory of new home sales for sale was 250,000 in November, which is a 5.1-month supply at the current sales pace. The median sales price of new houses sold was $305,400.
Regionally, new home sales increased 43.8% in the Midwest and 7.7% in the West. Sales were unchanged in the Northeast and fell 3.1% in the South.