New home sales rose 5.5% in November after a 10% slide in October that took sales down to record lows for the building industry.
The U.S. Census Bureau reported Thursday that sales of newly constructed single-family homes rose to a 290,000 seasonally adjusted annual rate in November from a 275,000 rate in October.
Sales in October were revised downward by 8,000 units.
In August, the sales rate hit a record low of 274,000, which is the lowest since the government started reporting on housing construction in 1963.
The Census Bureau also reported that the inventory of new homes for sale has fallen to 197,000, which is the lowest level since 1968.
The National Association of Home Builders estimates that the total for sales for 2010 will come in at 321,000.
But NAHB economists are forecasting an improving economy and pent-up demand will push sales up 26% to 405,000 in 2011.
A lot will depend on the willingness of lenders to finance homebuyers and homebuilders, according to NAHB senior economist Bernard Markstein.
Even in areas where housing markets are in good shape, builders are finding it hard to get financing for "viable projects," Markstein said.
