While the pace of existing home sales in the U.S. quickened in November, the pace of new home sales fell 11 percent from October.
“The tax credit put a Band-Aid over the housing problem and in October and November we ripped it off” as it was set to expire, said Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, who projected sales would fall. “Demand for housing is not likely to pick up on a consistent basis until we start to see some improvement in employment.”
Think foreclosures when trying to rationalize the divergence in pace between existing and new home sales.
∙ A Sprinter’s Or Marathoner’s Pace? [SocketSite]
∙ Sales of U.S. New Homes Unexpectedly Fell in November [Bloomberg]