New Homes Sales up Slightly, Inventory Down

New homes sales in October rose to arnseasonally adjusted annual rate of 307,000 according to data released today byrnthe Census Bureau and the Department of Housing and Urban Development.  This is a 1.3 percent increase from therndownwardly revised estimate for September sales of 303,000 and 8.9 percentrnabove the 282,000 pace of new home sales in October 2010.  An estimated 25,000 new homes sold during thernmonth.</p

Sales surged in the Midwest, up 22.2rnpercent month-over-month and 37.5 percent from one year earlier.  The annual rate in the Midwest in October wasrn55,000.  The West also performed well withrna 14.9 percent increase over the September rate and 54.0 percent improvementrnsince October 2010.  Sales during thernperiod were at a 77,000 annual rate.  Thernrate of sales was unchanged from September in the Northeast at 22,000, a figurernthat was 26.7 percent below that of one year earlier while the South’s rate ofrn153,000 was down 9.5 percent month-over-month and 5.6 percent year overrnyear.  </p

There were 162,000 homes for sale at thernend of the October, identical to the number available at the end of September, anrninventory of 6.3 months at the current pace of sales.   Anrnestimated 200,000 new homes were for sale one year earlier, an 8.5 monthsrnsupply.  Of the 162,000 available homes,rnconstruction has not yet begun on 28,000, 74,000 are under construction, andrn60,000 are completed.  Homes that soldrnduring October were on the market a median of 7.4 month compared to 8.0 monthsrnin September and 8.1 months in October 2010.</p

The median sales price of new homes inrnOctober was $212,300 and the average was $242,300.  In October 2010 the median price was $204,200rnand the average was $254,400.</p

In a statement this morning the NationalrnAssociation of Home Builders (NAHB) called the October report “the best pace ofrnnew-home sales activity since thisrnMay.”  Bob Nielsen, NAHB chairmanrnsaid, “Builders have been seeing some marginal improvement in salesrnactivity over the past few months, particularly in select markets wherernconsumer confidence is higher due to improved economic conditions. While thisrntrend is encouraging, overall sales activity is still well below normal due tornthe effects of overly tight credit conditions for builders and buyers, therncontinued flow of distressed properties on the market, and inaccurate appraisalrnvalues on new homes.”</p

New Home Sales Data
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