Steel Markets

New Home Sales at Highest Pace Since July 2007

Written by Sandy Williams


New home sales surged in November to the highest pace since July 2007, report the U.S. Census Bureau and Department of Housing and Urban Development. The seasonally adjusted annual sales rate of 733,000 was up 17.5 percent from October and 26.6 percent from November 2016.

Home prices averaged $377,100 in November with a median sales price of $318,700.

At the end of November, inventory was 283,000, a supply of 4.6 months at the current sales rate.

Regionally, sales rose 31.1 percent in the West, 14.9 percent in the South, 9.5 percent in the Northeast, and 6.9 percent in the Midwest.

“The November sales numbers are consistent with our reports of growing builder confidence, particularly big gains in traffic to new home sites,” said Granger MacDonald, chairman of the National Association of Home Builders. “Builders are encouraged by the increased demand for housing and expect business to continue to improve in 2018.”

“Tax reform legislation should boost economic growth, setting the stage for continued strengthening of the housing market,” said NAHB Chief Economist Robert Dietz. “Job market growth, expected wage increases and tight existing home inventory will also help the market move forward next year.”

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