New home sales in the South jumped by 14% in November, reaching a seasonally adjusted annual rate of 417,000, according to the latest data from the U.S. Census Bureau. While the rebound didn’t fully offset October’s 22% plunge, November marked the fourth-best month of the year for the region.
- With the surge, the South now accounts for 63% of all new home sales nationwide, cementing its role as the driving force behind the national housing market.
Mixed Month: The Midwest also posted a strong November, with new home sales climbing 17% to a seasonally adjusted annual rate of 88,000. This regional boost provided further support for the national housing market as it rebounded from a challenging October.
- Not all regions shared in the November upswing. Sales in the West fell to an annualized rate of 136,000, while the Northeast dropped to 23,000. These declines tempered the overall national growth.
Nationally, new home sales rose 6% in November to a seasonally adjusted annual rate of 664,000. While positive, the figure fell short of economists’ projections of a 10.6% increase, highlighting uneven regional performances.
- The inventory of new homes for sale across the country dipped slightly to 490,000 at the end of November.
- This represents a supply of 8.9 months at the current sales pace. This is down from October’s 9.2 months but remains the second-highest level in two years.
Bottom Line: The South continues to do the heavy lifting in the housing market, keeping national sales afloat despite regional declines and unmet expectations.
