New home sales increased by 1.6% in November to an annualized pace of 315,000 units. Sales are now up 9.8% on a year ago basis. This marks the third straight month new home sales have increased, and is the fastest pace since April. Strenght was seen primarily in the Midwest and South. Both the Northeast and West recorded sizable declines.
The inventory continues to drop, with months supply falling to 6.0 in November. The number of new homes for sale declined and sits near historical lows. The median price of a new home dropped over 6% in November, and is down 2.5% from this time last year. Median price is a volatile measure, particularly with so few sales occurring.
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