Analyst: New-home data hits bottom, probably

A report from Global Hunter Securities describes the new-home market as "finally forming a bottom."

Based on the number of new homes available for sale, the months required to sell them and the total new homes for sale, there's some good news, according to Global Hunter Securities: "We believe the new-home market is finally forming a bottom."

In a research paper, GHS analyst Richard Hastings wrote: "The number of new homes sold per month remains quite low by historical comparisons, at about 25,000 units per month on average (not seasonally adjusted). The number of new homes available for sales hit an all-time record low at 162,000 units in October (unadjusted). Based on our interpretation of the Census data, we believe the industry's ability to move inventory and to balance new project commitments to market demand all point to improvements in the new-home market for sales and construction."

The research paper followed closely on the heels of encouraging reports on pending home sales and consumer confidence.