US November New Home Sales - Catch up with weakness seen in other series
November new home sales with a 12.2% decline to 590k are much weaker than expected and the lowest since November 2022. This appears to be catch up with weakness seen in other housing data and mortgage rates moving off their highs may limit the downside in 2024.
November’s 12.2% fall in new home sales extends a 4.0% (revised from 5.6%) October decline and marks a break in trend from what had been a resilient picture through September.
The prior resilience in new home sales had contrasted a falling trend in existing home sales and housing surveys from the MBA and NAHB. The most recent data from these series however hints that their downtrends may be starting to find a base.
The median price saw a 4.8% rise on the month to correct two straight declines, seeing yr/yr data ruse to -6.0% from -16.5%.
However the average price saw a third straight monthly decline, by 1.9%, with yr/yr data standing at -7.3% versus -8.2% in October.
