New home sales fall 8.9%
Sales of new single‐family homes fell 8.9% in October to a seasonally adjusted annual rate of 544,000 from a revised September rate of 597,000, the Commerce Department reported.
The latest figures are also 12% below the October 2017 estimate of 618,000.
The decline leaves a seasonally‐adjusted estimate of 336,000 new houses for sale at the end of October, representing a 7.4-month supply at the current sales rate. This marks a 13.8% increase compared to September 2018 and a 32.1% year-over-year increase.
Also, the median sales price of new houses sold in October 2018 fell 3.1% from a year ago to $309,700. The average sales price was $395,000.
Commenting on the latest report, National Association of Home Builders Chairman Randy Noel said, “The November reading is consistent with reports from our builders, who say that the job market and demographic tailwinds bode well for housing demand but rising interest rates and home prices are forcing customers to take a pause.”
Noel, a custom home builder from LaPlace, La. also noted that high home prices are partly to blame. “Policymakers should see this drop in sales as an indicator that housing affordability will continue to slow down the market.”
Regionally, new single-family home sales dropped 18.5% in the Northeast, plunged 22.1% in the Midwest, fell 7.7% in the South, and declined 3.2% in the West.
“Home sales declined this month as housing affordability continues to be a hurdle for consumers,” said NAHB Senior Economist Danushka Nanayakkara-Skillington. “While a solid economy and positive demographics support future demand for housing, it is critical to address this mounting affordability crisis.”
On a year-over-year basis, sales increased 6.3% in the Midwest, 4.1% in the West, and 3.8% in the South but fell 17.1% in the Northeast.
The latest figures are also 12% below the October 2017 estimate of 618,000.
The decline leaves a seasonally‐adjusted estimate of 336,000 new houses for sale at the end of October, representing a 7.4-month supply at the current sales rate. This marks a 13.8% increase compared to September 2018 and a 32.1% year-over-year increase.
Also, the median sales price of new houses sold in October 2018 fell 3.1% from a year ago to $309,700. The average sales price was $395,000.
Commenting on the latest report, National Association of Home Builders Chairman Randy Noel said, “The November reading is consistent with reports from our builders, who say that the job market and demographic tailwinds bode well for housing demand but rising interest rates and home prices are forcing customers to take a pause.”
Noel, a custom home builder from LaPlace, La. also noted that high home prices are partly to blame. “Policymakers should see this drop in sales as an indicator that housing affordability will continue to slow down the market.”
Regionally, new single-family home sales dropped 18.5% in the Northeast, plunged 22.1% in the Midwest, fell 7.7% in the South, and declined 3.2% in the West.
“Home sales declined this month as housing affordability continues to be a hurdle for consumers,” said NAHB Senior Economist Danushka Nanayakkara-Skillington. “While a solid economy and positive demographics support future demand for housing, it is critical to address this mounting affordability crisis.”
On a year-over-year basis, sales increased 6.3% in the Midwest, 4.1% in the West, and 3.8% in the South but fell 17.1% in the Northeast.