The numbers: Denver real estate New-home sales ran at a seasonally adjusted annual 657,000 rate in November, the Commerce Department said Thursday. That was 17% higher than October’s sales pace and marked an 8-month high.
That trounced the MarketWatch forecast of a 563,000 selling rate.
What happened: The government’s November report on denver homes for sales of newly-constructed homes was delayed by the partial government shutdown. And as a reminder, new-home sales data are compiled based on small sample sizes, making them prone to hefty revisions. November’s data came with a reported margin of error of 20%.
In November, sales were 7.7% lower than a year ago. The median sales price was $302,400, 12% lower than year-ago levels, a factor that probably helped boost sales. And there were precisely 6.0 months’ worth of inventory, the exact measure that has generally determined a market evenly balanced between supply and demand.
Big picture: One strong month aside, anyone interested in the housing sector will be glad to see the curtain fall on 2018. Rising mortgage rates and home prices, scarce inventory, anxiety about the midterm election and, later, the stock marketSPX, +0.07% gyrations all made for buyer fatigue for most of the second half of the year.
For the year to date as of this report, sales were running only 2.7% higher than the same period in 2017.
Some big publicly-traded builders did report better-than-expected demand in December, and a dip in mortgage rates since that time has led to a surge in applications for home loans. Still, big questions remain about the health of the houses for sale denver market now. Read more