New home sales posted a small gain in November, after downward revisions for prior months. However, the sales pace for newly-built single-family homes is ending the year strong, with solid demand pointing to additional construction gains in 2020.
Contracts for new, single-family home sales increased slightly in November by 1.3% to a 719,000 seasonally adjusted annual rate according to estimates from the joint release of HUD and the Census Bureau. However, that gain came off of downward revisions for prior months in the fall.
Year-to-date, the 2019 estimate of sales through November is 9.8% higher compared to the year-to-date total for 2018. This gain returns the new home sales pace to the general trend line it has been on since the end of the Great Recession. This general rising trend for new home sales, after the housing affordability crunch of 2018, suggests additional construction gains in 2020. Sales are being supported by ongoing low interest rates and historically low unemployment.
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