In another sign that the U.S. housing market is softening, new home sales slowed again last month. But home builders are still optimistic.
Estimated sales of new single-family properties worked out to a seasonally adjusted annual rate of 438,000 in November.
The pace of new home sales slowed from 445,000 a month earlier. October’s rate was revised down from
458,000 originally reported.
The revision to the October number makes two consecutive months
that new home sales have faltered.
A year earlier, the revised rate was 445,000, according to the data jointly provided by the Census Bureau and the Department of Housing and Urban Development.
The report followed another disappointing report Monday from the National Association of Realtors indicating that sales of previously owned homes retreated 6 percent in November.
In addition, the Census Bureau said earlier this month that building permits were down 5 percent in November.
But David Crowe, chief economist for the National Association of Home Builders, noted in an announcement from the trade group that despite the drop — sales have been relatively stable over the past four months.
“As the labor market and broader economy continue to strengthen, we can expect the housing sector to gain momentum heading into next year,” Crowe said.
NAHB Chairman Kevin Kelly highlighted confidence in the sector, with builders feeling good enough about future business to increase inventory.
At $280,900, last month’s median sales price
declined from $290,100 a month earlier but appreciated from $277,100 a year earlier.
Average prices tumbled to $321,800 from $375,200 in October and were also down from $335,600 in November 2013.
November 2014 ended with a seasonally adjusted inventory of 213,000, three-thousand more units than at the end of the previous month. The supply was 185,000 at the same point in 2013.
The latest inventory represented a 5.8 month supply based on the current sales rate. The supply lengthened from 5.7 months in October and 5.0 months in the same month last year.
