U.S. new home sales jump to fastest rate in 2 1/2 years

Americans bought new homes last month at the fastest pace in more than two and a half years, further evidence of a sustained housing recovery. Sales of new homes rose 4.4% in November from October to a seasonally adjusted annual rate of 377,000, the Commerce Department says in a report released this morning. That’s the fastest pace since April 2010, when a federal tax credit boosted sales. New-home sales have also increased 15.3% over the past year. However, sales remain below the 700,000 that economists consider healthy. Only 149,000 new homes were for sale at the end of last month, according to the report. That’s just above a record low of 143,000 in August. Still, the market is steadily improving and that has lifted builder confidence to its highest level in 6 1/2 years, according to the National Association of Home Builders/Wells Fargo survey released last week. The pace of home construction is nearly 22% higher than a year earlier, according to government data. Builders are on track this year to start work on the most homes in four years. Home prices are also increasing. The Standard & Poor’s/Case-Shiller national home price index released Wednesday increased 4.3% in October compared with a year ago. That’s the largest year-over-year increase in two and a half years. Sales of previously occupied homes rose to the highest level in three years in November, the National Association of Realtors reported last week.