New Home Sales Jump

The outlook for fourth-quarter residential investment just improved as new home sales jumped 16.9 percent in November to a 657,000 annualized rate.

The Northeast saw the sharpest percentage jump but the South, which is by far the largest housing region, posted a very impressive 20.6 percent gain. Yet there is trouble in the West, down 5.9 percent on the month and down 25.9 percent on the year.

And total year-on-year sales, despite November's gain, are still in the negative column, at minus 7.7 percent. Prices are also down, 11.9 percent lower for the yearly median to $302,400 which makes for a 7.0 percent monthly drop that points squarely at price concessions.

Supply increased 0.6 percent to 330,000 though relative to sales, which jumped, supply decreased to 6.0 months from 7.0 months.

Volatility in this report is common but November marks an important gain for new home sales which had been breaking down. Nevertheless, the trouble in the once high flying West is notable, not only in this report but other housing reports as well.