November 2024 marked a significant rebound for new home sales across the United States as builders and buyers finalized transactions delayed by recent hurricanes. According to the U.S. Census Bureau and the Department of Housing and Urban Development, new single-family home sales surged to a seasonally adjusted annual rate of 664,000 units, reflecting a 5.9% increase over the previous month. Though this figure slightly missed economists' expectations of 669,000 units, it still indicates positive momentum within the housing market.
The overall rise was underpinned by substantial sales incentives offered by builders eager to compensate for lost ground earlier in the season, particularly following the disruptive impact of fall hurricanes on the southern market. Sales performance, interestingly enough, varied considerably by region, with the South posting the largest increase of nearly 14%, bringing its total sales to 417,000 units. Meanwhile, the Midwest saw the strongest growth rate since 2021, climbing up by 17% to 88,000 units. Conversely, challenges persisted as sales dipped by 41% and 8% in the Northeast and West respectively.
One noticeable aspect of the current home sales environment is the increase in inventory levels, which rose to its highest point since late 2007. With 490,000 new homes available for sale at the close of November, buyers were presented with wider choices. This increase not only improved affordability but also contributed to the overall decline in median home prices. The median price of newly sold homes fell by 6.3% year-over-year, sitting at $402,600. The average sales price was recorded at around $485,000, with homes priced between $300,000 and $399,000 claiming the largest share of total sales at 26%.
Further analyzing the market, homes priced above $1 million accounted for around 5% of total transactions. This hints at a bifurcation within the market where more buyers are drawn to mid-range homes, likely seeking affordability yet also drawn to certain amenities or location advantages offered by higher-priced properties.
On the inventory front, roughly 54% of the available homes were identified as either under construction or not yet started, whereas completed homes represented the remaining 46%. This mix signals gradual stabilization within the housing supply chain and potentially caters to the increased buyer demand as mortgage rates ease, encouraging more prospective homeowners to enter the market.
Year-to-date figures show new home sales have climbed to 632,000 units, translating to a 2% increase compared to the same period last year. This uptick is largely attributable to the noteworthy 18% increase witnessed within the Midwest and 3% growth rate observed in the West. Sales performance has stabilized relatively well for the South and Northeast, with minor fluctuations seen through the year.
Notably, recent data from real estate experts at Redfin revealed home sellers nationwide increased their listings by about 8% year-over-year during the four weeks ending December 15. This surge marks the second-largest annual rise since mid-2024, indicating renewed confidence among sellers amid revitalized buyer interest and declining mortgage rates.
This sentiment reflects the market's resilience as it adapts to both external pressures from economic shifts and internal dynamics of buyer preferences. The median home sale price witnessed a parallel increase of 6% over the year, currently resting at $383,302. This hints at conducive conditions benefiting both buyers and sellers alike.
Overall, the November data paints a picture of recovery within the U.S. housing market, driven by substantial regional variations and buyer incentives. With improving supply conditions and favorable pricing, the outlook remains cautiously optimistic as builders and buyers navigate the uncertainties of the broader economy. The recent fluctuations highlight the market's adaptability, offering various opportunities for both parties engaged within the housing sector.