New Home Sales Up 5.5% To 290,000 Annual Rate

WASHINGTON — New home sales increased 5.5% to a seasonally adjusted annual rate of 290,000 in November, the Commerce Department said Thursday.

October sales were revised lower to 275,000 from the 283,000 that was originally reported last month. Economists expected 300,000 new home sales in November.

“The level of new home sales remains close to record lows, despite November’s gains,” said Diane Swonk, chief economist at Mesirow Financial. “Sales are likely to remain suppressed for some time to come. Competition from the existing and nearly-new market is the primary problem... It’s hard to sell a lot of new homes when it is cheaper to buy existing properties.”

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