New home sales fell 1.6 percent in November to a 438,000-unit pace, marking the second straight monthly decline. With the exception of the West, sales activity was weak across all regions.
Better Days are Ahead for New Home Sales
New home sales fell more than expected in November, pullingsales activity down to its lowest level since July. With November now on the books, new home sales activity is on track toend the year around a 440,000-unit pace. This is only a modest increase over last year and is evidence of the sluggish nature of the housing recovery. Brighter days are ahead, however. We expect sales to increase to a 500,000-unit pace in 2015.
Median Prices Up Over the Past Year
Both the median and average new home price fell during the month. Over the past year, median prices rose 1.4 percent, while average prices fell 4.1 percent. The discrepancy in the two measures reflects a change in the mix of homes sold. Many of the new homes sold during the year were at a higher price point.
Although sales activity is expected to increase, buyer traffic has yet to recover and remains below the critical level of 50.