Analysts had expected new home sales to decline to a seasonally-adjusted annual rate of about 720,000 units in November 2007.
For the past 12 months, U.S. new home sales declined 34.4%. Sales in the Midwest fell the most, 38.7%, followed by a drop in the South of 34.3%, a slump in the West of 33.8% and finally a decline of 28.1% Northeast.
The median sales price of new houses sold in November 2007 was $239,100, or down 0.4% in the past 12 months, while the average sales price was $293,300, or up 0.5% from November 2006.
Housing's stats
Economist Steve Affinito told BloggingStocks Friday the November 2007 new home sales statistic contained little good news.
"It shows a contracting home building market that's going to continue to impact the economy throughout 2008," Affinito said. "I'd like to be more encouraging, but we have falling sales, stagnant prices, a rising backlog of homes and tougher mortgage lending requirements. And that means the housing sector will continue to correct and serve as a contraction force on the U.S. economy."
Affinito added that housing's continued doldrums, "will keep the Fed's eye on the need to cut short-term interest rates at least two more times in 2008." He sees another 50-75 basis points in total Fed interest rate deductions in 2008. "And with these housing numbers, we're going to need them," Affinito said.
The seasonally-adjusted estimate of new houses for sale at the end of November 2007 was 505,000, which represents a supply of 9.3 months at the current sales rate, up from 8.8 months in October 2007.
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