The gain, although small,
makes builders hopeful, officials with the National Association of Home Builders said.
The sale of newly built
single-family homes increased 5.5 percent in November 2010, the U.S. Commerce
Department said last month.
The gain, although
small, makes builders hopeful, officials with the NAHB said.
"While builders
continue to face a great deal of competition from short-sale and foreclosure
properties, the improvement registered in new-home sales in November is a good
sign," said Bob Jones, chairman of the National Association of Home
Builders and a builder from Bloomfield Hills, Mich. "With consumer
interest in new homes expected to continue to revive as the economy and job
markets improve, and inventories of new homes for sale near record lows, our
concern now is that a lack of construction financing will keep builders from
being able to expand the selection of what they have to offer buyers heading
into the spring."
The gains were credited to
the Southern U.S., which saw a 5.8 percent jump, and the West, where sales
surged 37.3 percent. Sales declined in the Midwest and Northeast, officials
said.
"Builders in our latest
surveys have indicated that they are starting to see more buyers who are
seriously considering a new-home purchase, and today's numbers showing that
sales headed in the right direction in November bode well for what the future
may hold," said David Crowe, the NAHB’s chief economist. "The
extremely low inventory of new homes on the market is also a positive sign that
builders have been exercising tremendous caution with regard to new
construction activity. That said, unless builders' access to financing for new
development improves, many will not have a product to sell when the opportunity
arises, which in turn would slow a market recovery as well as potential job
generation from new home building."