New home sales stumble in October

New home sales slipped in October, according to the latest report from the U.S. Census Bureau and Department of Housing and Urban Development.

Sales of new single-family homes fell 0.3% to a seasonally adjusted annual rate of 999,000. This compares to the revised September rate of 1.002 million.

But the latest report is 41.5% ahead of the October 2019 rate of 706,000. 

The median sales price of new homes sold in October declined 0.3% to $330,600 compared to the September median price of $331,600. Year-over-year, the October median price is 2.45% above the October 2019 median price of $322,400

The average sales price was $386,200, down 4.38% from the prior month but increased 1.55% from the average price of $380,300 in October 2019.

The seasonally-adjusted estimate of new houses for sale at the end of October was 278,000, representing a 3.3-month at the current sales rate. This marks a 40% decline from a 5.5-month supply at the end of October 2019.

On a regional basis:

• New home sales in the Northeast increased 5.1% from the previous month and soared 86.4% on a year-over-year basis.
• In the Midwest, new home sales are up 11.2% in October and jumped 51.4% on a year-over-year basis.
• Sales in the South fell 2% in October but have leaped 40.1% on a year-over-year basis.
• The West saw new home sales drop 1.5% in October but sales are 35.9% ahead of last year's pace.

Housing remains on solid ground fueled by low mortgage rates and an urban exit from metro markets.

This report follows last week’s news that housing starts in October were at a seasonally adjusted annual rate of 1.53 million, which is 4.9% above the revised September estimate of 1.459 million. The latest figures are also a 14.2% climb from a rate of 1.34 million in October 2019.

Single-family housing starts increased 6.4% from the revised September rate of 1.108 million. The pace of single-family starts in October was the highest production rate since the spring of 2007.

Additionally, total existing-home sales increased 4.3% from September to a seasonally-adjusted rate of 6.85 million while existing single-family home sales are up 4.1% to a seasonally-adjusted annual rate of 6.12 million in October.

The complete Monthly New Residential Sales report for October 2020 is available here.