US new home sales race to 7-month peak in Nov. as housing market joins year-end rally
by SOURAV D | VIEW 1908
On Thursday, US Commerce Department data had unfurled that sales of new US single-family houses, the most lucrative item in US homebuilding industry, soared to a seven-month peak last month, mostly driven by a chronic shortage in available existing homes, nonetheless, a robust build-up in price pressure had reportedly fizzled out first-time buyers’ optimism. On top of that, unsurprisingly, as the US Fed had signaled at least three rate hikes each in 2022 and 2023 alongside a faster bond-taper program, which would eventually stem a higher mortgage rate, US homebuyers had jumped on the bandwagon of a year-end purchasing frenzy with sells jumped in densely populated South and West alongside Northeast part of the United States.
However, sales of new US single-family homes fell in Midwest, parts of which had recently been hit with a whirlpool of winter storms.Besides, latest Commerce Department data came forth a day after a US NAR (National Association of Realtor) survey had reported that US existing home sales jumped as much as 1.9 per cent last month, suggesting a salubrious outlook in US homebuilding market, while data had shown earlier in the week that US homebuilding would likely to pick up by 7.1 per cent in 2021 following a 7.3 per cent increase a year earlier.
New US single-family home sales rose to a seven-month peak
According to US Commerce Department data, new US single-family home sales soared as much as 12.4 per cent to a annualized rate of 744,000 units in November, marking off the strongest level since April, however, October data was revised lower to 662,000 units compared to a prior estimate of 745,000 units.
Nonetheless, over past twelve months through November, new US single-family home sales had tumbled 14.0 per cent compared to the same time a year earlier.