New Home Sales Rise in October

September’s sales pace was revised down to 447,000 units from the previously reported 468,000 units.

The median sales prices of new houses sold in October was $281,500, down from $307,800 in September. October’s sales volume was recorded at a seasonally adjusted annual rate of 495,000.

At October’s sales pace it would take 5.5 months to clear the supply of houses on the market, down from 6.0 months in September.

Americans recovered much of their appetite for owning new homes this year.

New home purchases have rallied 16% year-to-date (YTD), mostly due to low mortgage rates and strong hiring gains.

The new houses’ sales appear to be volatile on a monthly basis.

New-home sales were up in three out of the four regions.

Looking ahead, Crowe said he expects to continue seeing modest increases in both new home construction and home sales. In the Northeast, home buying jumped 135.5%, while sales were less aggressive in the South and Midwest.

The housing sector is looking to have its best year since the housing crash.

Lindsey Piegza, chief economist for Stifel Fixed Income, noted that this month’s rise helped offset a 12.9% decline the month prior. The sales improved even though potential buyers face slim picking as the number of listings on the market has dropped 4.5 percent. Home sales in the West declined slightly.

The inventory of new homes on the market increased 1.3 percent to 226,000 last month, the highest since March 2010.