Washington, DC, December 27, 2006--Sales of new homes in November rose 3.4 percent to an annual pace of 1.047 million following a 1.013 million rate the prior month, which was faster than previously reported, according to a Commerce Department report.
The supply of unsold homes at the current sales pace fell to the lowest since May.
Economists had expected sales to rise to a 1.018 million rate in November from a previously reported 1.004 million.
Building permits in November fell to a 1.506 million-unit pace, the lowest in nine years, the Commerce Department reported Dec. 19.
The median price of a new home rose 5.8 percent in November to $251,700 from $237,900 a year earlier, today's report showed. It was the biggest year-over-year increase since June.
The number of homes for sale fell to a seasonally adjusted 545,000 during the month from 558,000 the prior month. The supply of homes at the current sales rate dropped to 6.3 months' worth from 6.7 months' worth in October.
Sales of new homes were down 15 percent in November from the same month last year, the Commerce Department said. The number of homes completed and waiting to be sold rose by 2,000 to 169,000 in October.
Sales rose in three of four regions. They increased 22.5 percent in the Northeast to a 49,000 annual rate, 22.4 percent in the Midwest to a 175,000 pace, and 19 percent in the West to a 294,000. The rise in the Midwest was the biggest since December 2004. Sales fell 9.3 percent in the South to 529,000.
The number of new homes available is close to a record. They have averaged 555,000 this year through October, compared with 351,000 during the past 10 years, according to government figures.
