New Home Sales Increase After Downward Revision
New single-family home sales are on the rise after the previous month's rate was revised downward. The Census Bureau and Department of Housing and Urban Development announced earlier this week new home sales in November were at a seasonally adjusted rate of 719,000, up 1.3% from October. Year-to-year, sales were up 16.9% from November 2018's estimate of 615,000. Economists predicted sales would hit 734,000 units in November, according to Reuters.
This was the best November result since 2006, but it's only the third-best monthly showing this year. The median sale price of new homes was $330,800, while the average price was $388,200. "New home price increases have been moderating for much of the year, as more building is focused on entry-level homes in more affordable parts of the country," states a release from Wells Fargo Securities.
Much of the new sales were in the West and South, which is more than 85% of the total units. Despite the large percentage (more than 55%) of new sales coming from the South, sales in the region dipped more than 4% from month-to-month. Meanwhile, the Midwest remained the same, and the Northeast saw a more than 50% increase in November.
-Michael Miller, managing editor