Continuing a climb that began in September, sales of new single-family homes in October were at a seasonally adjusted annual rate of 307,000, according to the U.S. Department of Commerce. This is 1.3 percent above the revised September rate of 303,000 and is 8.9 percent above the October 2010 estimate of 282,000.
Continuing a climb that began in September, sales of new single-family homes in October were at a seasonally adjusted annual rate of 307,000, according to the U.S. Department of Commerce. This is 1.3 percent above the revised September rate of 303,000 and is 8.9 percent above the October 2010 estimate of 282,000.
Also, the median sales price of new homes sold in October was $212,300; the average sales price was $242,300. The seasonally adjusted estimate of new houses for sale at the end of October was 162,000, an all-time low and representing a supply of 6.3 months at the current sales rate.
"Builders have been seeing some marginal improvement in sales activity over the past few months, particularly in select markets where consumer confidence is higher due to improved economic conditions," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While this trend is encouraging, overall sales activity is still well below normal due to the effects of overly tight credit conditions for builders and buyers, the continued flow of distressed properties on the market, and inaccurate appraisal values on new homes."
"Particularly encouraging is the fact that builders continue to hold down their inventories to match the current sales rate, with the number of new homes for sale now down to a sustainable, 6.3-month supply," said NAHB Chief Economist David Crowe.
