New Homes Sales Show Modest Gain

By:: Kirk Haverkamp | December 27, 2010

New home sales posted a modest increase in November, but still remain well below their levels of one year ago, according to figures released by the Census Bureau.

Sales of newly built, single-family homes were up 5.5 percent during the month, to a seasonally adjusted annual rate of 290,000 units. That’s up from October’s revised rate of 275,000 units, but more than 21 percent down from the November 2009 rate of 368,000 units.

New home sales remain depressed following the end of the homebuyer tax credit last spring and the current monthly figures are in the middle of the range sales have remained in since then. New home sales hit a recent high of 414,000 units in April, right before the end of the credit, and since then have fluctuated between 274,000 and 310,000, with no sustained trends either up or down.

The inventory of new homes for sale continues to shrink steadily, and the length of time new homes remain on the market before selling has fallen sharply over the past year. The length of time homes were on the market between completion and selling was 8.2 months in November, down from 13.9 months in November 2009. The inventory of new single-family homes for sale is down to 197,000 units, down from 235,000 one year ago.

The supply of new single-family homes for sale has fallen every consecutive month since August 2007, when the supply stood at 538,000 units.

The new housing market has been hit hard by the economic downturn, with tight credit and a flood of inexpensive foreclosed properties further driving down demand.

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

See Today's Rates

National Rates

Loan Type	Today	+/-
30 yr fixed	3.72
15 yr fixed	3.03
5/1 ARM	2.75

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Real Estate Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.