New home sales rise in November but 2011 still probably the worst year on record

Although new home sales rose slightly in November, according to an AP story the year 2011 will likely rank as the worst year for sales since records were first kept in 1963:

Americans bought slightly more new homes in November, but 2011 will likely end up as the worst year for sales in history.

The Commerce Department says new-home sales rose 1.6 percent last month to a seasonally adjusted annual rate of 315,000. That's less than half the 700,000 new homes that economists say should be sold to sustain a healthy housing market.

It's also below the 323,000 homes sold last year - the worst year for sales on records dating back to 1963...

Economists note that housing is a long way from fully recovering and that many people are opting to rent because they can't afford to buy or don't feel a home is a wise investment right now.

Home construction has begun a gradual comeback and should add to economic growth in 2011. But the main reason for that increase is that the rate of apartment construction is nearly twice as fast as it was two years ago. Single-family-home construction remains depressed...

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