December 23, 2024 15:22 GMT
US DATA: New Home Sales Partially Rebound, But Prices Starting To Sag
US DATA
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November posted improved home sales figures compared with a soft October, but r. New home sales came in roughly as expected at 664k on a seasonally-adjusted annualized rate, up from 627k prior (upwardly revised from 610k), following on from data showing a 4.8% M/M increase in existing home sales in November to the highest level since March at 4.15M.
- The October figure looks to have been depressed by hurricane activity, particularly in the South (which saw sales rebounding 14%). However, overall there has been some softening versus broader trends in activity, with the 2-month average existing sales at an 11-month low.
- Median new sales prices are down 6.3% Y/Y to the lowest since February 2022 ($402.6k) with supplies remaining robust: there are 8.9 months of inventory available, close to the 9.2 months in October, some of the highest figures seen outside of crises//immediately post-pandemic, and well above the 3.8 months of existing homes.
- High mortgage rates are impacting both new and existing home sales activities, but there remains greater stagnation on the existing side as current homeowners are finding the opportunity cost of moving too high. Conversely, homebuilders continue to provide incentives for new home buyers to help offset the high prevailing interest rates.
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