Photo: Robert Clark
Following a downward revision the previous month, new US home sales rebounded unexpectedly to a 10-year high in October.
And, despite a minor uptick in inventory, the new home median sales price fell slightly, according to a report released today by the National Association of Home Builders (NAHB).
Nationally, new home sales increased 6.2 percent from the previous month to a seasonally adjusted annual rate of 685,000 units in October — the highest level since October 2007.
New home sales were up 18.7 percent annually in October.
October also marked the sixth month in 2017 where the annual sales pace of new single-family homes exceeded 600,000 units. Although September’s pace was revised down to 645,000 units from 667,000 units, new home sales have now increased for three consecutive months.
So far this year, new home sales through October are just about 9 percent higher compared to the same time last year.
New home sales were up from the previous month in all US regions in October — 30 percent in the Northeast, 18 percent in the Midwest, 6 percent in the West and 1 percent in the South.
“The expansion is supported by ongoing job growth and improving household formations, as well as tight existing home inventory,” says NAHB in the report.
Inventory of new single-family homes grew 1.4 percent to 282,000 units in October — the highest level since May 2009.
Supply is currently at 4.9 months — a “healthy” level, although a six-month supply is generally considered to be the ideal balance between supply and demand.
Meantime, existing inventory remains tight, and more new homes are necessary to meet the demand for housing.
The median new home sales price decreased from the previous month to $312,800 in October while the average sales price increased to $400,200.
Click here to read the entire report.