November new-home sales saw a remarkable uptick as prices fell to their lowest levels in over two years, offering a glimmer of hope for buyers navigating a challenging housing market. According to the U.S. Census Bureau, the median sales price for new homes in November 2024 dropped to $402,600—a 6.3% decrease from the previous year. This price adjustment fueled a 5.9% monthly rise in signed contracts, equating to a seasonally adjusted annual rate of 664,000 units. Compared to November 2023, sales were up by an impressive 8.7%.
Price Trends Drive Buyer Interest
The decline in prices played a critical role in enticing buyers. Notably, 25% of newly built homes sold in November were priced under $300,000, compared to just 13% in October. For the first time in years, the median price of a new home fell below the $406,100 median price of existing homes, reversing a typical trend where new homes command a premium.
Joel Berner, a senior economist at Realtor.com®, highlighted this shift: “It’s a common misconception that new builds are out of the price range of prospective buyers. The reality is that new construction often offers better prices, financing, and product quality than the existing-home market does now.”
Rising Inventory Supports Demand
Builders are capitalizing on this renewed interest by expanding inventory. November’s supply of new homes rose 2.1% from October, reaching an annualized level of 490,000 units. This increase translates to an 8.9-month supply at the current sales pace—a stark contrast to the tighter 3.8-month supply of existing homes. Furthermore, 25.3% of new homes for sale in November were completed and move-in ready, marking the highest share since 2016.
“This is a positive development for buyers,” said Berner. “Having more move-in-ready homes on the market allows buyers to make informed decisions without feeling rushed.”
Regional Sales Insights
Regional trends varied significantly in November. The Midwest and South emerged as leaders in new-home sales growth:
- Midwest: Sales rose 17.3% month-over-month to 88,000 units, representing a 10% increase from the previous year.
- South: Sales surged 13.9% month-over-month to 417,000 units, up 13.6% year-over-year.
- Northeast: After an unusual spike in October, sales fell 41% month-over-month to 23,000 units, remaining 11.5% below November 2023 levels.
- West: Sales declined by 7.5% month-over-month to 136,000 units, down 1.4% year-over-year.
Berner noted, “The Midwest will almost certainly lead 2024 in new-home sales growth, with a strong year-to-date edge over 2023.”
A Promising Outlook for November New-Home Sales
The surge in November new-home sales underscores the growing appeal of newly built homes, particularly as builders adjust prices and inventory to meet market demands. With affordability improving and supply increasing, the housing market’s new-construction segment offers a beacon of hope for buyers navigating high mortgage rates and elevated existing-home prices. For more insights, visit Realtor.com® to explore the latest housing trends and statistics.
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