Washington — According to a report out from the National Association of Home Builders this week, sales of newly built, single family homes grew 1.6 percent to a seasonally adjusted annual rate of 315,000 units for the month of November. This latest news marks the third consecutive monthly gain in new-home sales.
"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 Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nevada in a release from the NAHB. "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. Our concern is that overly restrictive lending conditions for both builders and buyers will constrain this growth and postpone the arrival of a recovery in housing and the overall economy."
NAHB Senior Economist Robert Denk cited favorable mortgage rates and a buyer’s market in areas of the U.S. where the economy is beginning to show steady signs of recovery. "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,” concluded Denk.
Gains were seen across the South and Midwest, while the Northeast and West posted declines. Overall, the inventory of new homes for sales fell to 158,000 units in November, a new record low, which represents a six-month supply, should the current sales pace continue.