New Home Sales Ease but Near 5-Year High, Durable Orders Rise 3.5%

Nichole Harper
24 Dec, 2013
New York City

U.S. stocks extended gains during short trading session. Durable goods orders increased 3.5% in November and new home sales fell 2.1% but average home price increased to a record high.

[R]11:35 AM New York – U.S. stocks extended gains during short trading session. Durable goods orders increased 3.5% in November and new home sales fell 2.1% but average home price increased to a record high.[/R]

Record Average New Home Price in November

New home sales declined modestly in November but priced continued to advance according to the latest data released by the Commerce Department.

Monthly sales of single-family homes fell 2.1% to a seasonally adjusted annual rate of 464,000 homes from the revised October rate of 474,000 rate, the high since July 2008. Sales of new homes increased 17% from a year ago month.

October home sales were revised higher to 444,000 annual rate.

The median price of a new home increased 10.6% from a year ago and increased 4.5% from previous month to $270,900.

Average sale price reached a record high of $340,300 since the data collection began in 1963.

Inventory of unsold homes declined to 4.3 months in the month from 4.5 months in October.

The new home sales are expected to be near 430,000 for the year current, record since the onset of financial crisis in 2008, according to the data collected by 123jump research.

Durable Goods Orders Ahead of Expectations

Order for durable goods which are expected to last longer than a year increased 3.5% in November after declining 0.7% in October, the Commerce Department said today.

Orders in the month increased on 21.8% jump in volatile commercial aircraft orders. Core capital goods orders increased 4.5%, the largest monthly increase since January.

U.S. Stocks in Review

AAR increased 1.5% after the company was selected as a part of consortium with Northrop Grumman to supply airframe parts and equipment for E-2C Hawkeye planes to the Japan Air Self-Defense Force.

Tesla ((TSLA)) increased 4.5% after the National Transportation Highway Traffic Safety Administration awarded its highest five-star rating for crashworthiness for 2014 Model S sedan.