US New-Home Sales Unexpectedly Slump to a One-Year Low

  • Contract signings declined 12.2% in November to 590,000 rate
  • Purchases in the South, largest US region, decreased 20.9%

Residential homes in Lithonia, Georgia.

Photographer: Elijah Nouvelage/Bloomberg
Lock
This article is for subscribers only.

US new-home sales unexpectedly slumped in November, led by a sharp drop in the South and suggesting a bumpy road to recovery for the housing market.

Purchases of new single-family homes decreased 12.2% to a 590,000 annual pace last month, a one-year low, government figures showed Friday. The median forecast in a Bloomberg survey of economists called for a 690,000 rate.