November Home Sales Drop 11% From October

According to the National Association of Home Builders, both affordability and lack of supply can be to blame for the drop in November new-home sales. The monthly rate of newly built single-family homes decreased by 11% in November from October—the lowest rate since June. Overall, the pace of sales this year left little new-home inventory left as home prices reached an average of $335,300 in November. Still, new-home sales in November were 21% higher than one year ago and net sales are up 19.1%, says NAHB. 

Looking back to the spring, the April data (570,000 annualized pace) marks the low point of sales for the 2020 recession. The April rate was 26% lower than the prior peak, pre-recession rate set in January. Sales then mounted a historic surge from April to July, outpacing gains in actual construction.

Sales-adjusted inventory levels increased somewhat in November, coming in at a 4.1 months’ supply, after four consecutive months below an incredibly low reading of 3. Inventory increased in November, but remains 11% lower than a year ago. Inventory of completed, ready to occupy homes is down 43% over the last year, down to a count of just 43,000 homes nationwide.

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