Steel Markets

New Home Sales Jump 5.2% in November

Written by Sandy Williams


Sale of new residential homes jumped 5.2 percent in November to a seasonally adjusted annual rate of 592,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. The rate is 16.5 percent above the sales rate of 508,000 new homes in November 2015.

Median sales price in November was $305,400 and the average sales price was $359,900. At the end of November, and estimated 250,000 homes were listed for sale, representing a supply of 5.1 months at the current sales rate.

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

“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.”

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