The United States Department of Commerce reported this morning that sales of new homes rose by 1.6% last month. 2011 will likely end up being the worst year on record for new home sales, and November’s total of a seasonally adjusted 315,000 doesn’t quite reach the 700,000 total economists believe is necessary for a robust housing market.
At this point, all we can hope for is improvement. Given the events of the last several years, a robust, or healthy housing market seems outlandish.
The housing market is one of the largest driving forces in the U.S. economy, and economists estimate that each new home sold creates about three new jobs.
Of course, this leaves us in a vicious cycle. The economy needs to improve to boost home sales, but new home sales are critical to the economy’s growth.