Home International New home sales in US rose in November

New home sales in US rose in November

By IANS/EFE,

Washington : Sales of new homes in the US rose 1.6 percent between October and November to reach an annualized rate of 315,000, authorities said Friday.

Yet the figure compares unfavourably with the level of November 2010 – 323,000 – and is far below the annual rate of 700,000 sales that is typical of a strong housing market.

Last month’s reading makes it likely that 2011 will end as the worst year for new home sales since the government started keeping track in 1963.

The market for new homes was strongest last month in the South, where sales rose 12.9 percent, followed by the Midwest with an increase of 7.5 percent.

Sales plunged 26.3 percent in the Northeast in November and were down 16.9 percent in the West, the Commerce Department said.

The median sale price for a single-family home fell from $222,600 in October to $214,100 last month, while the number of such homes on the market nationwide dipped to an all-time low of 158,000.

Sales of existing homes in the US increased 4 percent in November to an annualized rate of 4.42 million, the National Association of Realtors said Wednesday.

The median price for existing homes sold last month was $164,200, down 3.5 percent from November 2010, while inventory declined by 5.8 percent to 2.58 million units, equivalent to eight months’ supply.