New Home Sales Rate Reaches 10-Year High in October
Sales of newly built, single-family homes in October rose 6.2% to a seasonally adjusted annual rate of 685,000 units from a downwardly revised September reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest sales pace since October 2007. Year-to-date, new home sales are 8.9% above their level over the same period last year.
"The October report shows strong sales growth at entry-level price points," said Granger MacDonald, chairman of the National Association of Home Builders (NAHB). "In markets where builders are able to provide homes for families with different household budgets, they can fulfill a growing demand for housing."
"There is solid growth in the number of sales contracts signed before construction has begun, a strong indicator that new single-family home production should continue to grow as we look ahead to 2018," said Robert Dietz, NAHB chief economist.
The inventory of new homes for sale was 282,000 in October, which is a 4.9-month supply at the current sales pace. New home sales increased in all four regions. Sales rose 30.2% in the Northeast, 17.9% in the Midwest, 6.4% in the West and 1.3% in the South.
For more information, visit www.nahb.org.