U.S. purchases of new homes unexpectedly surged in November to the highest level since before the last recession, indicating resilient demand, according to government data Friday.
Highlights of New-Home Sales (November)
- Single-family home sales jumped 17.5% m/m to 733k annualized pace (est. 655k), fastest since July 2007, from 624k rate (revised from 685k)
- Monthly percentage increase biggest since January 1992
- Purchases in the West and South rose to the fastest rates since 2007
- Median sales price increased 1.2% y/y to $318,700
The report showed that residential construction will increase in coming months and provide fuel for the economy. In another sign builders will stay busy, the number of properties sold in which construction hadn’t yet started increased almost 43 percent to 258,000 in November, the most since December 2006.
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