Despite the fact that sales of newly constructed home bumped up 5.5 percent in November, month to month, one analyst was prompted to call it, "Another Miserable Report."
Patrick Newport over at IHS Global Insight noted that while the seasonal adjustments pushed the numbers up, in reality November's actual sales volume was the lowest ever recorded.
Even the National Association of Home Builders couldn't muster much enthusiasm. "The gain represents a partial bounce-back from a near-record low, downwardly revised number of new-home sales in October," went their release.
"While builders continue to face a great deal of competition from short-sale and foreclosure properties, the improvement registered in new-home sales in November is a good sign," said Bob Jones, chairman of the National Association of Home Builders.
Still, the builders are concerned about lack of credit to build new homes. They claim that when demand surges, they will not have product to offer. This even as the Commerce Department reported an 8.2 month supply of newly constructed homes at the current sales pace, but the current sales pace is pretty awful.
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