New home sales rose in November to a 377,000-unit pace, which is the highest level since April 2010. Gains were concentrated in the Northeast and South. The median price is up 14.9 percent over the past year.
New Home Sales Activity Shows Solid Gain
· New home sales rose more than expected in November to a 377,000-unit pace, from a downwardly revised 361,000-unit pace in October. Sales activity rose in the Northeast and South but tumbled in the Midwest and West. The South, which accounts for just over half the nation’s new home sales, posted a 21.1 percent gain in November. Regarding the Northeast, the impact of Hurricane Sandy is still difficult to measure.
Lean Inventories and Rising Prices Give Hope
· Sales activity for new home purchases through November 2o12 are running 19.4 percent ahead of their year-ago pace. The continued upward trend in new home sales is being boosted by lean inventories and rising home prices, which continues to drive improving builder sentiment.
· The months’ supply fell in November to 4.7 months, from a revised 4.9 months in October.