New Home Sales Increase to Highest Level in a Decade

New single-family home sales increased to a seasonally adjusted annual rate of 685,000 in October, according to the U.S. Census Bureau and the Department of Housing and Urban Development. The October level was 6.2% above the downwardly revised September rate of 645,000 and 18.7% above the October 2016 estimate. October’s sales were the strongest figure since October 2007.

Sales grew in each of the four regions, led by the Northeast which jumped 30.2%. The Midwest, South and West posted gains of 17.9%, 1.3% and 6.4%, respectively.

The median price of a new home was $312,800, down 3.7% from September. The average price was $400,200.

At the end of October, the estimated supply at the current sales declined from 5.6 months to 5.2.

Read the Census/HUD release.

About Jack McCabe

Jack McCabe is a research associate in the Economic Policy and Research group at the ABA.
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