Sales of new single-family homes jumped 6.2 percent in October to a seasonally adjusted annual rate of 685,000 units, the Commerce Department reported Monday. This marks the highest pace for new-home sales since October 2007. “The October report shows strong sales growth at entry-level price points,” says Granger MacDonald, chairman of the National Association of Home Builders. “In markets where builders are able to provide homes for families with different household budgets, they can fulfill a growing demand for housing.”
Price Points of New Construction
- Less than $200,000:
13 percent of new homes
- $500,000 and higher:
The Northeast saw the largest uptick in new-home sales in October, jumping 30.2 percent month over month and nearly 65 percent year over year. The Midwest posted a 17.9 percent monthly increase in October, while sales rose 6.4 percent in the West and 1.3 percent in the South. Overall, new-home sales are up nearly 9 percent from a year ago.
“It’s pretty good news. Sales are up pretty strong,” says Danielle Hale, realtor.com®’s chief economist. “Homeowners can potentially trade up to a new home and put their current home up for sale. That would increase the number of existing homes for sale.” The inventory of new homes for sale was 282,000 in October, which is a 4.9-month supply at the current sales pace.
Source: National Association of Home Builders and “Looking for a Newly Constructed Home? You Have Good Timing,” realtor.com® (Nov. 27, 2017)