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Sales of new homes climbed 1.3% in November according to data released today. Wells Fargo’s analysts point out sales are up 9.8% from last year on a year-to-date basis. They see homebuilders are focusing more on entry-level housing, which is why the median prices has risen so modestly this year.

Key Quotes:  

“New home sales rose 1.3% in November to an annualized pace of 719,000. Although this level of sales was not quite as strong as expected, strength in the NAHB/Wells  Fargo Homebuilders.”

“The median price of a new home has risen 7.2% over the past year. New home price increases have been moderating for much of the year, as more building is focused on entry-level homes in more affordable parts of the country.”

“Housing demand appears to have strengthened. Homebuilder confidence has risen to its highest level since 1998 and the present sales index jumped 7 points to 84 in December to a new cycle high.”