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Home » Housing » US Real Estate » Home Sales » New home sales fall slightly in October

New home sales fall slightly in October

By Mike Wheatley | December 2, 2019

The number of new home sales in the U.S. fell slightly last month, but they remain almost 10% higher than they were this time last year, according to data released by the Commerce Department this week.

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In addition, the last two months in new home sales represent the highest monthly sales rate since October 2007, the Commerce Department said.

Overall, sales of newly built single-family homes came to an adjusted annual rate of 733,000 units in October, down 0.7% compared to the previous month.

“For-sale inventory remains tight as this marks the third consecutive month below a six-month supply,” said Danushka Nanayakkara-Skillington, assistant vice president of forecasting and analysis at the National Association of Home Builders, in a statement. “The low inventory rates show there is a need for added construction to meet growing demand.”

Available inventory of new homes for sale stood at 322,000 in October, which is around a 5.3 month supply at the current sales pace. The median sales price in October came to $316,700, down from a median sales price of $328,300 in October 2018.

“Buyers are facing not enough choices,” Lawrence Yun, chief economist of the National Association of Realtors, said in a statement. “Therefore, prices are getting bid up, especially in the starter home market and in the mountain states.”

On a regional basis, the South saw new home sales rise 15.7% year-over-year, while the West saw gains of 9.1%. However the Northeast saw a decline in new home sales of 11.1%, while the Midwest fell by 7.5% compared to one year ago.

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at [email protected]
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