US new home sales for October were 745K vs 800K estimate. The prior month of 800K was revised sharply lower to 742K) However, the median sales price increased to $407,700 in October, the highest on record.
That was the largest increase in the median sales price on record as it increased to $407,700 in October.
October US New Home Sales
- US October new home sales 745K vs 800K expected
- Prior 800K (revised to 742K)
- On a year-over-year basis, new home sales were down 23.1%.
- Sales +0.4% vs +14.0% prior
- The median sales price increased to $407,700 in October, highest on record and compared to $346,900 in the same month a year earlier.
- Median sale price +17.5% y/y
- 6.3 months of supply, compared with 3.6 months at the start of the year.
- There were 389K new homes available for sale in the market, the most in 13 years and up from 378K in September
The report tells us that the growth in new home sales is concentrated in higher-priced homes, as inflation pressures, pushed by supply constraints and labor shortages, are curtailing the building of lower-priced homes and pinching affordability for lower-income buyers.
Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales account for the remaining 10% and are based on contract signings.
The big question was after the lockdown eases and the economy reopens how much damage has been done with the massive unemployment and wealth erosion.
From The TradersCommunity News Desk