Sales of new single-family houses in November were at a seasonally adjusted annual rate of 664,000, according to estimates released by the US Census Bureau and the Department of Housing and Urban Development. This is 5.9% above the revised October rate of 627,000 and is 8.7% above the November 2023 estimate of 611,000.
The median sales price of new houses sold in November was $402,600 while the average sales price was $484,800. The seasonally adjusted estimate of new houses for sale at the end of November was 490,000, which represents a supply of 8.9 months at the current sales rate.
First American Deputy Chief Economist Odeta Kushi noted the sales figures were “softer than consensus expectations, partially because mortgage rates increased 38 basis points in November. Higher-for-longer mortgage rates are a headwind to both builders and buyers – increasing buyers’ monthly mortgage payment and raising financing costs for builders. Nevertheless, we expect the new-home market to outperform the existing-home market in this environment. Builders have inventory they need to sell, and the ability to offer incentives to coax buyers off the sidelines.”
Robert Dietz, chief economist of the National Association of Home Builders, said his organization was “forecasting single-family starts to post a slight increase in 2025 as the financing conditions for builders improve modestly. The significant decline for apartment construction is forecasted to end, with that market stabilizing during the second half of next year.”
Sales of new single-family houses in November were at a seasonally adjusted annual rate of 664,000, according to estimates released by the US Census Bureau and the Department of Housing and Urban Development. This is 5.9% above the revised October rate of 627,000 and is 8.7% above the November 2023 estimate of 611,000.
The median sales price of new houses sold in November was $402,600 while the average sales price was $484,800. The seasonally adjusted estimate of new houses for sale at the end of November was 490,000, which represents a supply of 8.9 months at the current sales rate.
First American Deputy Chief Economist Odeta Kushi noted the sales figures were “softer than consensus expectations, partially because mortgage rates increased 38 basis points in November. Higher-for-longer mortgage rates are a headwind to both builders and buyers – increasing buyers’ monthly mortgage payment and raising financing costs for builders. Nevertheless, we expect the new-home market to outperform the existing-home market in this environment. Builders have inventory they need to sell, and the ability to offer incentives to coax buyers off the sidelines.”
Robert Dietz, chief economist of the National Association of Home Builders, said his organization was “forecasting single-family starts to post a slight increase in 2025 as the financing conditions for builders improve modestly. The significant decline for apartment construction is forecasted to end, with that market stabilizing during the second half of next year.”
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