New home sales in October increased by a modest 0.4 percent to a seasonally adjusted annual rate of 745,000 following a furious September.
After increasing by double digits in September 2021, sales of new single-family homes slowed significantly in October, rising by a modest 0.4 percent to a seasonally adjusted annual rate of 745,000, the U. S. Census Bureau and Department of Housing and Urban Development announced on Wednesday.
However, that modest increase in sales allowed the number of new home sales to hit their highest level since April 2021.
Sales of new single-family homes were still 23.1 percent down year over year from sales in October 2020.
Meanwhile, the median sales price of new homes sold during October was $407,700, up from the revised median price of $404,700 in September. The average sales price in October was $477,800.
New houses for sale at the end of October represented a 6.3-month supply of homes at the current sales rate, with a seasonally adjusted annual estimate of 389,000 new homes for sale.
Although new home sales growth was very muted in October compared to September, RCLCO’s Kelly Mangold noted that amid typical seasonal slowdowns, October’s numbers are a positive sign for the strength of demand in the housing market.
“Despite the decline in starts this month, permitting and sales both remained strong, indicating that buyers are still seeking new homes, and the busier summer sales season may be extending later into fall and winter this year than is typical,” Mangold said in a statement emailed to Inman.
“The lack of resale homes on the market has continued to bolster demand for new homes, and builders are working to overcome supply chain issues to meet delivery dates,” she added. “RCLCO expects home sales to remain strong to close out the year, making for an unusually busy for-sale market this holiday season.”