New home sales hit in November

According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes in November 2017 rose 17.5 percent to a seasonally adjusted annual rate of 733,000 units from a downwardly revised October reading. This is the highest sales pace since July 2007. Year-to-date, new home sales are 9.1 percent above their level over the same period last year. "The November sales numbers are consistent with our reports of growing builder confidence, particularly big gains in traffic to new home sites," said Granger MacDonald, chairman of the National Association of Home Builders. "Builders are encouraged by the increased demand for housing and expect business to continue to improve in 2018." "Tax reform legislation should boost economic growth, setting the stage for continued strengthening of the housing market," said NAHB Chief Economist Robert Dietz. "Job market growth, expected wage increases and tight existing home inventory will also help the market move forward next year." The inventory of new homes for sale was 283,000 in November, which is a 4.6-month supply at the current sales pace.