Happy Thanksgiving to Everyone! Please enjoy a safe and enjoyable holiday with family and friends.
The U.S. Commerce Department on Wednesday reported the sale of new U.S. single family homes rose by 0.7% during October, to a seasonally adjusted annual rate of 458,000 units. The rise in October was the third straight month of gains. When compared to October 2013, new home sales for October 2014 were up 1.8%.
Across the country during the month of October, in the Northeast new home sales rose 7.1%, in the Midwest new home sales soared higher by 15.8%, in the South new home sales fell by 1.9% and in the West new home sales were lower by 2.7%.
Compared to 2013, the median new home price in 2014 soared higher by 15.4%, to a record $305,000. During September, the median sale price for a previously owned home was $208,300.
During October, the supply of new houses on the market rose 1.0%, striking the highest level since June 2010. It would take 5.6 months to clear the supply of houses on the market in October, up from 5.5 months during September. A healthy balance between supply and demand is generally a six month supply.
New home sales tend to be volatile on a month to month basis and account for nearly 8% of the housing market.
New home sales for September was revised lower to 455,000 units from 467,000 units, a revision indicating the housing market recovery would remain gradual. Revisions were lowered for August and July as well.
Slow wage growth continues to constrain the housing market. Nearly 1 million new houses were sold annually, on average, in the decade leading up to the recession.