BuildersOutlook2021Issue12 - Page 5

2021Issue12 BuildersOutlook 5

New Home Sales Jump in November

NAHB
New home sales posted a solid gain last month , driven by strong buyer demand , low existing home inventory and buyers ’ anticipation of future higher mortgage rates . Sales of newly built , singlefamily homes in November rose 12.4 % to a 744,000 seasonally adjusted annual rate from a downwardly revised reading in October , according to newly released data by the U . S . Department of Housing and Urban Development and the U . S . Census Bureau . New home sales were down 14 % compared to a year ago .
“ Our members are seeing strong buyer traffic as continued low mortgage rates are helping fuel sales ,” said NAHB Chairman Chuck Fowke , a custom home builder based in Tampa , Fla . “ However , builders are still grappling with major supply chain issues and soaring materials costs , which are causing construction delays .”
“ Despite the increase in sales , housing affordability remains a major concern ,” said Danushka Nanyakkara-Skillington , NAHB assistant vice president of forecasting and analysis . “ With building material pricing , the challenge for builders in 2022 will be dealing with higher input costs while making sure home prices remain within reach for American home buyers .”
A new home sale occurs when a sales contract is signed or a deposit is accepted . The home can be in any stage of construction : not yet started , under construction or completed . In addition to adjusting for seasonal effects , the November reading of 744,000 units is the number of homes that would sell if this pace continued for the next 12 months .
Inventory remains steady at a 6.5-month supply , with 402,000 new single-family homes for sale , compared to 290,000 in November 2020 .
The median sales price continued to rise to $ 416,900 from the $ 408,700 median sales price posted in October , and rose 18.8 % on a year-over-year basis , due to higher development costs , including materials .
Regionally , on a year-to-date basis , new home sales fell in all four regions , down 1.3 % in the Northeast , 5.3 % in the Midwest , 4.5 % in the South , and 12.5 % in the West .
For more analysis on home sales , production and mortgage rates , visit nahb . org .

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