After an unexpected rebound in October, new home sales are expected to tumble in November (latest data) following the plunge in existing home sales, starts and permits data, and homebuilder sentiment.
Instead – just like in October, new home sales soared (up 5.8% MoM vs -5.1% exp), and October was revised stronger (from +7.5% to +8.2% MoM)…
This is the 3rd month of surging new home sales in the last four, bucking every housing market trend. However, this is the ninth straight month of annual declines in new home sales.
The total new home sales SAAR is hovering around the COVID lockdown lows…
A mid-month retreat in 30-year mortgage rates back below 7% along with an increase in builder incentives may have helped support demand.
Still, the sales data are volatile from month to month.
The increase in sales last month was concentrated in the West and Midwest.
The median sales price of a new home was up 9.5% from a year earlier to $471,200.
Finally, given the total collapse in homebuilder confidence (about future sales), which still has a long way to go to catch down to the collapse in homebuyer confidence, we would suggest real estate agents ‘brace, brace, brace’…
Is that really where The Fed wants the US housing market to end up?
More From The Real Estate Guys…
- Sign up for The Real Estate Guys™ New Content Notifcations
- Check out all the great free info in our Special Reports library.
- Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
- Stay connected with The Real Estate Guys™ on Facebook, and our Feedback page.
The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.
Subscribe
Broadcasting since 1997 with over 600 episodes on iTunes!
Love the show? Tell the world! When you promote the show, you help us attract more great guests for your listening pleasure!
