Data released this week indicates that new single-family home sales continue to reflect a stabilizing market after a period of heightened volatility, according to the National Association of Home Builders (Washington, D.C.).
Sales of newly built single-family homes increased 18.7% year over year in October to a seasonally adjusted annual rate of 737,000 units, based on data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau (and delayed because of the government shutdown last fall). This represented a modest 0.1% decline from September and a 1.2% decrease on a year-to-date basis. A new home sale is recorded when a contract is signed or a deposit is accepted, regardless of the stage of construction. The seasonally adjusted annual rate reflects the pace of sales that would occur over a 12-month period if current conditions persisted.
New single-family home inventory totaled 488,000 units in October, unchanged from the prior month and 1.7% higher than a year earlier.
The new home sector has played an increasingly important role in meeting housing demand as resale inventory remains constrained in many regions.
