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New home sales increases in November though year over year rate of increase slows

dennis-norman-st-louis-realtor-real-estate-new-home-salesThere were 377,000 new homes sold in November, up 4.4 percent from the month before and up 15.3 percent from a year ago, according to the new home sales for November 2012 just released by the Commerce Department. While the rate of new home sales is still increasing from last year (which was a dismal year) the rate of increase slowed in November from October when sales were up over 17 percent from the year before.  My Mantra You’ve heard me say it, over and over….I don’t like “seasonally adjusted” numbers and “rate” of sales, so here you : Here is the raw data, the ACTUAL new homes sold- no fluff, no “adjusting” for November 2012:

  • 27,000 new homes sold, down from 29,000 in October up from 23,000 a year ago.
    • As usual, the South had the majority of the new home sales, increasing to 63 percent of total sales with 17,000 for the month
    • The west region dropped from 8,000 new home sales in October to 5,000 sales for November
    • The Midwest saw new home sales decline from 5,000 in October to 3,000 new homes sold in November.
    • The Northeast had 2,000 new homes sold, same as the month before
  • New Homes in the US in sold during the month been for sale for a median time of 5.3 months since the homes were completed, down from 6.1 months the month before.

My Forecast for new home sales in 2012- As the year is close to coming to a close we will know soon how my forecast of 304,000 – 334,000 new homes sold in 2012 works out. Through November there have been 338,000 new homes sold which, given that I expect about 26,000 homes to sell December, indicates that my forecast is going to come in a little low. Bad for me, good for the market!