Steel Markets

New Home Sales to Finish the Year Strong

Written by Sandy Williams


November sales of new single-family homes increased 1.3 percent to a seasonally adjusted annual rate of 719,000 units after a downward revision to the October rate.

“Fueled by the limited number of resales available for purchase, low interest rates and low unemployment, new home sales are finishing the year strong,” said Greg Ugalde, chairman of the National Association of Home Builders.

Inventory finally pulled out of a declining trend and was at a healthy 5.4 month supply in November with 323,000 new homes for sale. Median sales price was $330,800 compared to $308,500 a year ago.

Sales were up 14.5 percent in the South and 12 percent in the West. The Northeast and Midwest saw sales slide 10.4 percent and 7.6 percent, respectively.

“With almost all the 2019 data in, the housing rebound continued through the second half of the year,” said NAHB Chief Economist Robert Dietz. “New home sales are running 10 percent higher than in 2018, and high levels of builder confidence point to production gains going into 2020.”

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