New Home Sales Increased 4.3% In November

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New home sales were at an annual rate of about 490,000 in November – an increase of 4.3% compared with about 470,000 in October and an increase of 9.1% compared with about 449,000 in November 2014, according to figures released by the U.S. Census Bureau and U.S. Department of Housing and Urban Development.

The median sales price of a new home sold in November was $305,000; the average sales price was $374,900.

As of the end of November, there were about 232,000 new homes for sale – about a 5.7-month supply at the current sales rate.

Regionally, sales rose 20.5% in the West and 4.5% in the South. Sales fell 28.6% in the Northeast and 8.6% in the Midwest.

“It is encouraging to see new home sales continue to tick upward,” says Tom Woods, chairman of the National Association of Home Builders (NAHB), in a release. “Builders are also increasing their inventory even as they face difficulties accessing lots and labor.”

“Limited gains in new home sales can be attributed to a weak existing sales report,” adds David Crowe, chief economist for NAHB. “People who already own a house comprise most of the new residential construction market, and they often must sell their existing home before making another purchase.”

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