Sales of newly constructed homes rose 5.8% in November from October, but were down 15.3% from a year ago, according to a joint report from the US Department of Housing and Urban Development and the US Census Bureau. This is the second consecutive month of sales increases.
Sales of new single‐family houses were at a seasonally adjusted annual rate of 640,000 last month, up from a revised 605,000 in October. Sales were down from last year’s rate of 756,000.
Meanwhile, the median price for a new home dropped to $471,200, down from $493,000 the previous month. But it was still higher than the median price a year ago, which was $430,000.
“New home sales rose more than expected, but the big picture still is bleak for most Americans looking to buy,” said Robert Frick, corporate economist at Navy Federal Credit Union. The median new construction home price still unaffordable for the average American household, especially at today’s mortgage rates, he said.
In early November, mortgage rates reached their high for the year – an average of 7.08% for a 30-year fixed-rate loan – and have been falling since. Some buyers have taken advantage of the lower rates.
Source: edition.cnn.com
