Dec
23

We Present the Presents of Positive Housing News

December 23, 2011

What is this, a holiday week? The housing industry has received the gifts of good news this week on housing starts, existing-home sales, and now, new-home sales.

The sale of newly built, single-family homes in November rose 1.6 percent to a seasonally adjusted annual rate of 315,000 units, the U.S. Commerce Department reported Friday.

This marks the third consecutive month of increases and the fastest pace of new-home sales since April.

new home in a box surrounded by packing peanuts“Extremely favorable mortgage rates and prices are starting to lure buyers back to the market in select areas of the country where the economy is strengthening,” said National Association of Home Builders Senior Economist Robert Denk.

“As a result of this improving demand and the limited amount of new construction that is taking place, inventories of new homes for sale continued to fall to another all-time record low in November. Such limited supplies should eventually lead to some greater building activity in those improving markets, which in turn will boost job growth and further economic gains.”

While this week’s positive news included a 9.3 percent increase in the production of new homes in November, the Midwest was the only region in the country that posted a decline in that area.

But today’s good news compensates for that, as the Midwest was one of only two regions to post improvements in the sale of new homes last month:

*Midwest: New-home sales rose 7.5 percent in November.

*South: Posted gains of 12.9 percent.

*Northeast: New-home sales fell 26.3 percent last month.

*West: Fell 16.9 percent.

Finally, last month’s inventory of new homes for sale fell 1.3 percent to 158,000 units, which represents a six-month supply at the current sales pace. That is a new record low.

“With today’s report, we have now seen three straight months of modest gains in sales, starts and builder confidence in the market for new single-family homes,” said National Association of Home Builders chairman Bob Nielsen.

“While the numbers are still quite low on a historic basis, this upward trend indicates that the market is slowly finding its footing and bodes well for the months ahead.”

Happy holidays.

Categories: Economy, New Homes

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Tracey

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