STOCK MARKET SNAPSHOT FOR 25/11/2021
Sales of new U.S. single-family homes rose in October, but the sales pace for the prior month was revised sharply down as higher prices remain a hurdle for some first-time buyers.
New home sales increased 0.4% to a seasonally adjusted annual rate of 745,000 units last month, the Commerce Department said on Wednesday. September’s sales pace was revised down to 742,000 units from the previously reported 800,000 units.
Economists polled by Reuters had forecast new home sales, which account for more than 10% of U.S. home sales, unchanged at a rate of 800,000 units. Sales fell 23.1% on a year-on-year basis in October. They peaked at a rate of 993,000 units in January, which was the highest since the end of 2006.
Still, demand for new homes remains underpinned by an acute shortage of previously owned houses on the market.
The government reported last week that the backlog of houses yet to be constructed in October was the largest in 15 years.
At October’s sales pace it would take 6.3 months to clear the supply of houses on the market, up from 6.1 months in September.
Source: Reuters (Reporting by Lucia Mutikani; Editing by Andrea Ricci)