Sales of newly built, single-family homes increased 1.3 percent to a seasonally adjusted annual rate of 719,000 units in November, off a downwardly revised October reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. In a sign that new home sales are on an upward path, this is the fourth consecutive month that sales topped 700,000.

“Fueled by the limited number of resales available for purchase, low interest rates and low unemployment, new home sales are finishing the year strong,” said Greg Ugalde, chairman of the National Association of Home Builders, and a home builder and developer from Torrington, Conn.

“With almost all the 2019 data in, the housing rebound continued through second half of the year,” said NAHB Chief Economist Robert Dietz. “New home sales are running 10 percent higher than in 2018, and high levels of builder confidence point to production gains going into 2020.”

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the November reading of 719,000 units is the number of homes that would sell if this pace continued for the next 12 months.

Inventory has been trending lower over the course of 2019 and now stands at a healthy 5.4 months’ supply, with 323,000 new single-family homes for sale. Of that total, just 76,000 are completed, ready to occupy. The median sales price was $330,800. The median price of a new home sale a year earlier was $308,500.

Regionally, and on a year-to-date basis, new home sales are 14.5 percent higher in the South and 12 percent higher in the West. Sales are down 10.4 percent in the Northeast and 7.6 percent in the Midwest.

Total housing starts increased 3.2 percent in November to a seasonally adjusted annual rate of 1.37 million units, according to a report from the U.S. Housing and Urban Development and Commerce Department.

The November reading of 1.37 million starts is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, single-family starts increased 2.4 percent to a 938,000 seasonally adjusted annual rate off downwardly revised estimates for recent months. The multifamily sector, which includes apartment buildings and condos, increased 4.9 percent to a 427,000 pace.

“Market conditions for single-family starts are positive, given a lack of resale inventory, low interest rates and a solid job market,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “Builder confidence points to additional gains as we look forward.”

“Since the rebound in housing took hold earlier this year, single-family starts have posted a steady improvement in the pace of construction,” said NAHB Chief Economist Robert Dietz. “Under the current estimates, the 2019 year-to-date total for single-family construction is just 0.4 percent lower than the 2018 sum and is on pace to come in relatively flat for the year.”

On a regional and year-to-date basis, combined single-family and multifamily starts in November are 0.9 percent higher in the Northeast and 7.4 percent higher in the South. Starts are down 5.8 percent in the Midwest and 8.7 percent in the West.

Overall permits, which are a harbinger of future housing production, increased 1.4 percent to a 1.48 million unit annualized rate in November. Single-family permits inched up 0.8 percent to a 918,000 rate while multifamily permits increased 2.5 percent to a 564,000 pace.

Looking at regional permit data on a year-to-date basis, permits are 11.6 percent higher in the Northeast and 4.8 percent higher in the South. Permits are down 3.3 percent in the Midwest and 0.6 percent in the West.