New Home Sales of 315,000 Through November Miss Economist Estimates
Data from the Commerce Department Friday showed new home sales in the U.S. rose to a seven-month high in November. The solid data point follows a recent rise in builder and consumer confidence.
Purchases of single family properties grew 1.6 percent to an annually-adjusted rate of 315,000 homes, worse than an expected 2.6 percent rise in the metric economists had been looking for. The reading for October was revised higher from 307,000 to 310,000 units. (While analysts were expecting a reading of 315,00 units, the growth figure was below the estimate due to October's revision.)
The increase in new home sales was lead by the South as it experienced a 12.9 percent increase. The Midwest was the second biggest gainer with a 7.5 percent increase. Offsetting the strong gains seen in the Midwest and South were a 26.3 percent decrease in the North East area and a 16.9 percent decrease in the West.
The price of new homes in the U.S. fell 2.5 percent to $214,000 in November, the lowest of the year.
2011 may still prove to be the weakest year ever for new home sales, topping 2010’s record of only 323,000 homes.
Although new home sales are not outperforming expectations, the sale of previously-owned homes recently experienced growth not seen since January. On Wednesday of this weak, data showed sales rose 4 percent to 4.42 million homes during the month.
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Purchases of single family properties grew 1.6 percent to an annually-adjusted rate of 315,000 homes, worse than an expected 2.6 percent rise in the metric economists had been looking for. The reading for October was revised higher from 307,000 to 310,000 units. (While analysts were expecting a reading of 315,00 units, the growth figure was below the estimate due to October's revision.)
The increase in new home sales was lead by the South as it experienced a 12.9 percent increase. The Midwest was the second biggest gainer with a 7.5 percent increase. Offsetting the strong gains seen in the Midwest and South were a 26.3 percent decrease in the North East area and a 16.9 percent decrease in the West.
The price of new homes in the U.S. fell 2.5 percent to $214,000 in November, the lowest of the year.
2011 may still prove to be the weakest year ever for new home sales, topping 2010’s record of only 323,000 homes.
Although new home sales are not outperforming expectations, the sale of previously-owned homes recently experienced growth not seen since January. On Wednesday of this weak, data showed sales rose 4 percent to 4.42 million homes during the month.
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