MHProNews has learned from bloomberg that new home sales rose in Nov. 4.3 percent to an annualized pace of 490,000, slower than the 505,000 median estimate of economists surveyed by bloomberg. Previous estimates ranged from 400,000 to 550,000. The rate in Oct. was 470,000.

Home sales have been choppy throughout the year, due in part to low inventory that is causing home prices to rise faster than wages. Higher pay in the labor market will be needed to increase the demand for new homes.

“Home prices have risen pretty sharply over the last three to four years because of the lack of supply,” Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in New York, said before the report. “That seems to me to be the biggest negative for home sales outlook.”

New home purchases rose 11.1 percent in Nov. over the same period last year, on an unadjusted basis. The median price of a new home rose 0.8 percent to $305,000 last month over Nov. 2014.

Purchases increased in two of the four regions: the West witnessed a 20.5 percent rise, the highest rate since Aug. 2014, while the rate in the South rose 4.5 percent. ##

(Image credit: housingwire–home sales rising)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.