Single-family new-home sales posted a sharp rise in October, up 25.4 percent from September, according to newly released Census Bureau data. That was a similar rate to last spring when the new-home market was taking off in recovery mode.
Across the country, all regions posted double-digit gains in new-home sales in October. In the Midwest, they jumped 34 percent; 28.2 percent in the South; 19.2 percent in the Northeast; and 15.2 percent in the West. As sales gained, inventory levels fell to a 4.9-month supply.
“The strong October results return us to the sales levels we saw earlier this year and negate the pause caused by the sudden jump in interest rates,” says David Crowe, chief economist for the National Association of Home Builders. “We expect sales to continue to rise as pent-up demand is released and first-time home buyers creep back into the market.”
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