Sales of new single-family homes slipped 1.6% in November, disappointing forecasters who were betting on a small increase. With the year nearly complete, new home sales for the first 11 months are running virtually dead even with last year’s, the Commerce Department said Tuesday.
Sales fell to a seasonally adjusted annual rate of 438,000 last month, the slowest pace in four months. That compares with a revised rate of 445,000 in October, the same as in November 2013. Economists had expected a 460,000 annual rate, according to the median forecast in Action Economics’ survey.
Sales strengthened almost 15% in the West, but fell everywhere else. The annual pace of sales in the Northeast fell 12% from October and about 6% in both the South and Midwest. The median sales price of new homes fell to $280,900, down 3.2% from October, Commerce said.
The new home sales data was one of several reports on the economy released Tuesday. The Commerce Department also reported that the U.S. economy expanded at a 5% annual pace in the third quarter, an improved estimate that represents the fastest expansion rate since 2003.