New Home Sales Increased in October

The Census Bureau reports New Home Sales in October were at a seasonally adjusted annual rate (SAAR) of 632,000.

The previous two months were revised down.

This is 7.5 percent above the revised September rate of 588,000, but is 5.8 percent below the October 2021 estimate of 671,000.

The months of supply decreased in October to 8.9 months from 9.4 months in September. The all-time record high was 12.1 months of supply in January 2009. The all-time record low was 3.5 months, most recently in October 2020. This is well above the top of the normal range (about 4 to 6 months of supply is normal).

Not Seasonally Adjusted - The inventory of completed homes for sale (red) - at 61 thousand - is up from the record low of 32 thousand in 2021 and early 2022. This is getting close to the normal level of completed homes for sale and increasing.

The inventory of homes under construction (blue) at 298 thousand is very high, and about 6% below the cycle peak in July 2022. The inventory of homes not started is at a record 111 thousand.

The median sales price of new houses sold in October 2022 was $493,000. The average sales price was $544,000.