Sales of newly built, single-family homes rose to a seasonally adjusted annual rate of 657,000 units in November 2018, according to a January 2019 release from the U.S. Department of Housing and Urban Development.
This represents the highest sales pace since March 2018, according to an analysis by the National Association of Homebuilders.
“The sales increase was fueled by a notable uptick in homes sold at the affordable end of the market,” Randy Noel, chairman of the NAHB, said in a statement. “There is clearly a demand for new homes even as builders continue to grapple with supply-side challenges, including shortages of lots and labor and higher building material costs stemming from tariffs.”
“Builders are doing all they can to hold the line on costs to meet this demand, particularly at the entry-level market,” added NAHB’s chief economist, Robert Dietz.
A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. The November reading of 657,000 units is the number of homes that would sell if this pace continued for the next 12 months.