Sales of new single-family homes fell last month, but are still well ahead of the level a year ago.
October sales fell to a seasonally adjusted annual rate of 999,000, down 0.3 percent from a revised September estimate of 1.002 million. However, according to government data, home sales are still 41 percent higher than a year ago.
Americans continue to use record low mortgage rates to buy new homes and crowd out existing supply. The total supply of family houses in October fell by 40 percent to 3.3 months, which means how long it will take buyers to exhaust new houses on the market.
More than half of all home sales in October – 580,000 – took place in the southern half of the United States.
As demand rose last month, house prices also rose. The median sale price of new homes sold in October was $ 330,600, up from $ 322,400 a year earlier.
Demand for new homes has grown since the beginning of the pandemic. Except low mortgage rates, buyers are also motivated by the desire for larger houses with space to work from home.
Confidence in the construction of houses also reached new highs in October. Housing begins jumped 4.9 percent in October to 1.5 million, seasonally adjusted, from 1.4 million in September, according to the Census Bureau monthly report on housing construction.
Joel Kan, head of industry forecasts for the Mortgage Bankers Association, noted that the increase in housing starts was due to the construction of single-family homes, which he said was at its highest level since 2007.