Numbers: New home sales in the United States jumped 12.4% to a seasonally adjusted annual rate of 744,000 in November, from 662,000 revised the previous month, the government reported Thursday. The revised October sales total was the lowest since the worst pandemic period in April 2020.
Despite the jump, the pace of sales was lower than expected. Analysts polled by the Wall Street Journal had predicted that new home sales would occur at a seasonally adjusted annual rate of 766,000 in November.
Data is often revised significantly, as was October revenue. Sales in October were initially reported at 745,000.
Key details: The median selling price of new homes sold in October was $ 416,900, setting a new record. The supply of new homes for sale fell 8.5% between October and November, equivalent to a supply of six and a half months.
Regionally, sales increased in all regions in November except the Midwest. Sales were the strongest in the West.
Big picture: The housing sector remains robust, but is down from the highs reached last year. Sales are 14% lower than last year.
While the sector is expected to remain strong, the prospect of higher mortgage rates should prevent activity from heating up, economists said.
See: The most competitive housing market in the country based on the frequency of auction wars is a state capital in the Mid-Atlantic region
What are they saying: “It’s a really strange report. We wouldn’t be at all surprised to see the October and November numbers revised significantly upwards. In the meantime, the upward trend in mortgage applications is probably a better one. indicator of the underlying state of demand in the housing market, ”said Ian Shepherdson, chief economist at Pantheon Macroeconomics.
See: “Don’t expect prices to drop. »3 eminent economists and analysts on the question of whether we are in a real estate bubble.
More: Interest rates rise, but Fed actions could make it easier to get a mortgage
Market reaction: US stocks SPX,
were higher on Thursday due to lingering optimism that the omicron variant of the coronavirus that causes COVID-19 disease would not detail the global economy.