New Home Sales Climb To Highest Rate Since April 2010
WASHINGTON (Reuters) - New single-family home sales accelerated in November to the fastest pace in 2 1/2 years and median sales price jumped from the same month in 2011, signs that the U.S. housing recovery is gaining some steam.
The Commerce Department said on Thursday sales climbed 4.4 percent last month to a seasonally adjusted 377,000-unit annual rate. That was in line with analysts' forecasts of a 378,000-unit annual pace.
Government data for new home sales are subject to substantial revisions. Indeed, the Commerce Department cut its estimate for sales in October by 7,000 to a 361,000-unit rate.
The annual sales pace for November was the quickest since April 2010.
This year, the housing sector has been point of strength in an economy beset by flagging business confidence and cooling demand abroad. The median home price of a new home rose to $246,200, up 14.9 percent from the same month in 2011.
In previous years as we were watching the economy making baby steps to recovery, we were told that the housing market was holding it back. So it is good that as we are ready to jump the cliff, as Christmas sales were not as robust - people are finally getting it - that the housing market can now prop the economy a bit.