ZCZC
BCN-09
US-HOUSING-SALES-INDICATOR
US new home sales surge in November
WASHINGTON, Feb 1, 2019 (BSS/AFP) – New home sales in the United States
surged in November to an eight-month high, smashing economists’ expectations
as the normally slower colder months arrived, the government reported
Thursday.
The Commerce Department report, that was delayed by more than a month due
to the US government shutdown, showed long-suffering sales of new single-
family homes doubled in the Northeast, spiked in the Midwest after months of
declines, and also rose sharply in the South but stagnated in the fire-
stricken West.
Average and median prices also fell, suggesting efforts to increase supply
may have helped loosen what the tight market.
However, because the figures were delayed they gave an outdated picture of
the market. December data was due for release January 25 and has not been
rescheduled yet, and January data was set for February 26, but could be
rescheduled as well.
Analysts have predicted some recovery in the housing market as mortgage
rates cool.
New home sales jumped 16.9 percent over October’s level to an annual rate
of 657,000 units, well above the 555,000 called for in a consensus forecast
by private economists.
Figures for October also saw a healthy bump upwards, pointing to some
recovery in the market.
Median sales prices in November fell seven percent to $302,400, the lowest
since February 2017. Average prices also fell 8.4 percent to $362,400.
The weakness in the housing market in 2018 fed worries about the direction
of the US economy as the sector is often the first to peak in an economic
expansion and provides an early warning to a potential slowdown.
BSS/AFP/HR/0940