{"id":2727,"date":"2021-12-23T16:47:42","date_gmt":"2021-12-23T16:47:42","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2021\/12\/23\/new-home-sales-end-the-year-on-a-positive-note\/"},"modified":"2025-03-13T02:39:52","modified_gmt":"2025-03-13T02:39:52","slug":"new-home-sales-end-the-year-on-a-positive-note","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2021\/12\/23\/new-home-sales-end-the-year-on-a-positive-note\/","title":{"rendered":"New home sales end the year on a positive note"},"content":{"rendered":"\n

After a disappointing October, new home sales rose 12.4% month-over-month in November to 744,000 according to data<\/a> released by the U.S. Department of Housing and Urban Development<\/strong> and the U.S. Census Bureau<\/strong> on Thursday.<\/p>\n\n\n\n

Despite this increase, the sale of new homes is still down 14% compared to a year prior.<\/p>\n\n\n\n

“Our members are seeing strong buyer traffic as continued low mortgage rates are helping fuel sales,” Chuck Fowke, chairman of the National Association of Home Builders<\/strong> (NAHB) said in a statement. “However, builders are still grappling with major supply chain issues and soaring materials costs, which are causing construction delays.” <\/p>\n\n\n\n

In addition to causing construction delays, rising material costs, and supply chain and labor shortages<\/a>, have resulted in a rise in median sales price. According to HUD and the U.S. Census Bureau, the median sales price of a new home was $416,900 in November, an 18.8% year-over-year increase.<\/p>\n\n\n\n

“Despite the increase in sales, housing affordability remains a major concern,” Danushka Nanyakkara-Skillington, NAHB assistant vice president of forecasting and analysis said in a statement. “With building material pricing, the challenge for builders in 2022 will be to deal with higher input costs while making sure home prices remain within reach for American home buyers.” <\/p>\n\n\n\n

Homebuilders are also having to contend with increased buyer demand due to record low inventory<\/a> of existing homes, as well as buyers who are hoping to get in a home before mortgages rates<\/a> rise in the new year.<\/p>\n\n\n\n

\u201cBorrowing costs remain low, demographic-fueled demand is strong and existing-home inventory remains near record lows, making a new home an attractive option,\u201d Odeta Kushi, First American<\/strong> deputy chief economist said in a statement. \u201cYet higher construction costs (labor, lumber, materials) are being passed on to buyers, resulting in higher new-home prices.\u201d<\/p>\n\n\n\n

Currently an estimated 402,000 new homes are available for sale nationwide, which represents a 6.5 months\u2019 supply at the current sales rate.<\/p>\n\n\n\n

On a regional level, new home sales fell on a year-to-date basis in all four regions with the West seeing the largest decrease at 12.5% and the Northeast seeing the smallest decrease at 1.3%.<\/p>\n","protected":false},"excerpt":{"rendered":"

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