U.S. New Home Sales Surge by Most in Three Decades

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Dec. 4 (Bloomberg) -- Stephen Stanley, chief economist at Pierpont Securities, examines new home sales which surged 25.4 percent in October. He speaks on Bloomberg Television’s “Market Makers.”

Economist.

Stephen, new home sales, what you make of this?

It confirms that it is volatile.

At the end of the day, the 44 4,000 number is consistent.

There is month-to-month noise, but we have slow, steady improvement in the housing sector and i think that continues despite the backup and mortgage rates and increase in home prices.

Even though existing home sales have been following, you still feel it is steady growth?

We have probably plateaued, and you can understand why, mortgage rates are higher, and one that gets less attention than it deserves, home prices have risen so much.

That is a good thing if you own a home, but if you are in the market, it makes it tougher to afford what you want.

I think we have seen a plateau over the course of the summer and into the fall, but i think we will be ok.

Next spring will be the test.

My sense is by the time, things will be on the gradual improvement trend.

What you think about jobs -- the adp report beat by a large margin.

As a change your view in anyway?

-- any way?

I am not a fan of the adp report, but in general you see steady growth in the jobs market.

We have averaged about 180,000 in payrolls over the last three years and my guess is in november will be close to that.

We have periods where we under-

This text has been automatically generated. It may not be 100% accurate.

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