US New-Home Sales Rebound in November After Storm-Stricken Month

The US new-home sales market experienced a significant rebound in November, following a storm-stricken October. According to data from the US Census Bureau, the seasonally adjusted annual rate of new single-family home sales reached 590,000 units, a 1.3% increase from November 2022. This rebound can be attributed to a combination of factors, including a decrease in mortgage rates, an increase in housing supply, and the recovery in housing supply following Hurricane Ian's disruptions.



The decrease in mortgage rates in November contributed significantly to the rebound in new home sales. Mortgage rates fell to 6.3% in November, down from 6.9% in October, making home purchases more affordable for buyers. Additionally, the median sales price of new homes decreased slightly to $488,900, further boosting affordability.



The increase in housing supply, particularly new single-family homes, also played a crucial role in the November sales figures. The seasonally adjusted estimate of new houses for sale at the end of November was 451,000, a supply of 9.2 months at the current sales rate. This was a significant increase from the previous month, when the supply was 7.2 months. The higher supply of new homes likely attracted more buyers, leading to the rebound in sales.



The recovery in housing supply following Hurricane Ian's disruptions significantly influenced the November new home sales rebound. According to Redfin, new listings in Cape Coral-Fort Myers, a hard-hit area, surged by 1,314 units in the six months after the storm, more than offsetting the initial 900-unit drop. This increase in supply, coupled with a slight decrease in existing home inventory, made new homes more affordable and attractive to buyers. Consequently, new home sales rebounded in November, rising 1.3% year-over-year to 590,000 units.



In conclusion, the US new-home sales market demonstrated remarkable resilience in November, rebounding from a storm-stricken October. The decrease in mortgage rates, increase in housing supply, and recovery in housing supply following Hurricane Ian's disruptions all contributed to the strong sales figures. As the housing market continues to evolve, investors and buyers alike should keep a close eye on these trends and their potential impact on the broader economy.