US New Home Sales Rebound in November After Hurricane Drag

The US housing market experienced a significant rebound in November, with new home sales surging 4.8% compared to October, according to the National Association of Realtors (NAR). This surge came after a dip in October, likely due to Hurricane Helene, which significantly impacted the Western North Carolina housing market. Despite the hurricane's devastation, the region's housing market proved resilient, contributing to the national rebound in new home sales.

The surge in new home sales, rising 4.8% from October to a seasonally adjusted annual rate of 4.15 million units, suggests that buyers are taking advantage of the growing inventory. The supply of homes for sale at the end of October was 1.33 million units, up 17.7% from November of last year. This increase, coupled with a 3.8-month supply at the current sales pace, indicates a more balanced market between buyers and sellers.



The median price of new homes increased 4.7% year-over-year to $406,100, indicating that affordability remained a concern but did not deter buyers. The supply of new homes grew, with 1.33 million units available at the end of October, up 17.7% from the previous year, providing more options for buyers.



Mortgage rates, which had fallen to an 18-month low in September, then shot higher in October, influencing demand. However, as rates stabilized and affordability improved, buyers returned to the market. The resilience of the Western North Carolina housing market, despite Hurricane Helene, played a significant role in the national rebound in new home sales. According to the Ruiz Report, only 7% of listings were withdrawn or temporarily off the market due to Helene, highlighting the market's robustness.

The rebound in new home sales in November can be attributed to an increase in housing supply, particularly in high-demand areas. The surge in new home sales, rising 4.8% from October and 6.1% year-over-year, suggests that buyers are taking advantage of the growing inventory, driving the market's recovery. The national median sales price also rose 4.7% year-over-year, indicating sustained demand despite the hurricane's impact.

In conclusion, the US housing market experienced a significant rebound in November, with new home sales surging 4.8% compared to October. The surge in new home sales can be attributed to an increase in housing supply, particularly in high-demand areas, and the resilience of the Western North Carolina housing market despite Hurricane Helene. As the market continues to recover, buyers and sellers alike can expect a more balanced market with increased inventory and sustained demand.