November Sales Of New Homes Spike 12.4% – NMP Skip to main content

November Sales Of New Homes Spike 12.4%

David Krechevsky
Dec 23, 2021
new home

Biggest jump since July 2020 in part the result of dramatic downward revision of October 2021 total.

Sales of new single-family houses spiked in November, in part because of a significant downward revision of October’s totals, two federal agencies said today.

Sales were at a seasonally adjusted annual rate of 744,000 houses in November, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). The annual rate was 82,000, or 12.4%, more than the October rate of 662,000, which was dramatically revised downward from the initial estimate of 745,000, the agencies said.

In addition, November’s rate is 14% below the November 2020 estimate of 865,000, but that total was aided at the time by the end of pandemic-related lockdowns and the recovery from the COVID-19 economic downturn.

The median sales price of new houses sold in November achieved a record high of $416,900, nearly 19% higher than a year earlier.

First American Deputy Chief Economist Odeta Kushi says the record-level of new-home prices may be pricing out some buyers.

“In November 2020, 33% of new-home sales were priced below $300,000,” Kushi noted. “A year later, in November 2021, only 14% of new-home sales were priced below $300,000. Demand for new homes remains strong, but construction costs and prices have increased.”

The seasonally adjusted estimate of new houses for sale at the end of November was 402,000, a supply of 6.5 months at the current sales rate, the agencies said.

Kushi noted that the share of completed homes sold in November was 22%, down from 25% a year earlier.

“Prior to the pandemic, completed homes made up the largest share of new homes sold. Today, it is homes under construction,” Kushi said. “The share of completed homes/ready-to-occupy inventory in November was 9.7%, down from 14.5% one year ago. While the share of new-home inventory that is not started increased from 22% to 27%.

“Borrowing costs remain low, demographic-fueled demand is strong and existing-home inventory remains near record lows, making a new home an attractive option,” she continued. “Yet higher construction costs (labor, lumber, materials) are being passed on to buyers, resulting in higher new-home prices.”

Published
Dec 23, 2021
Sunbelt Cities Remain Top Destinations Despite Rising Home Prices

Miami, Phoenix, and Tampa are the top three places for New Yorkers and Los Angelenos.

Analysis and Data
May 25, 2022
Many Seller-Buyers Considering Out-Of-Market Move

Nearly half (45%) of 2022 seller-buyers plan to buy outside of their current city or town; 9% say they would move out of state for better deals.

Analysis and Data
May 25, 2022
U.S. Foreign-Born Population Less Likely To Be Homeowners

Miami, San Jose and Los Angeles have the highest percentage of foreign homeowners in the top 50 markets

Analysis and Data
May 25, 2022
Mortgage Applications Down Again

Applications fell 1.2% from a week earlier.

Analysis and Data
May 25, 2022
New-Home Sales Continue To Slide In April

Rising mortgage rates & home prices reducing affordability, even as supply grows.

Analysis and Data
May 24, 2022
Independent Mortgage Banks See Big Drop in Revenue & Profits

IMBs reported a net gain of $223 per originated loan in 1Q 2022, down from $1,099 per loan in the previous quarter. 

Analysis and Data
May 24, 2022