November New Home Sales: A Choppy End to 2021

• November new home sales rose 12.4% from downwardly revised October data, to 744,000 (SAAR), according to the U.S. Census Bureau. Sales were down 14% from November 2020.
• The median sales price of new houses sold in November 2021 was $416,900.
• There were an estimated 402,000 new homes available for sale nationwide in November (seasonally adjusted), a supply of 6.5 months at the current sales rate.

New home sales climbed sharply in November on the heels of a deep decline in downwardly revised October data, marking a choppy end of 2021 for home builders. New home sales recorded their largest monthly gain since July 2020, but were down considerably from last November, when home buying was boosted by the recovery from pandemic lockdowns and the brief COVID recession. Even so, compared to pre-pandemic 2019, new home sales have increased much faster than the typical two-year pace as buyers frustrated with lost bidding wars on existing homes find options in new construction. But they must be patient. In 2020, builders required about seven months to complete the average new home, but supply chain disruptions and labor shortages likely pushed this waiting period to record highs in 2021. These challenges will ease next year, and sales will be bolstered by robust wage growth and a wave of first-time buyers, but the future of tens of billions of dollars in proposed federal spending on housing is now more uncertain, potentially denting some longer-term prospects for home building.