U.S. New Home Sales Unexpectedly Rebound Sharply In October
After reporting a sharp pullback in U.S. new home sales in the
previous month, the Commerce Department released a report on
Wednesday showing new home sales unexpectedly rebounded in the
month of October.
The Commerce Department said new home sales spiked by 7.5
percent to an annual rate of 632,000 in October after plunging by
11.0 percent to a revised rate of 588,000 in September.
The sharp increase came as a surprise to economists, who had
expected new home sales to tumble by 5.5 percent to a rate of
570,000 from the 603,000 originally reported for the previous
The unexpected rebound came as new home sales in the Northeast
skyrocketed by 45.7 percent to a rate of 51,000, while new home
sales in the South spiked by 16.0 percent to a rate of 399,000.
Meanwhile, the report said new home sales the West slid by 0.8
percent to a rate of 132,000, and new home sales in the Midwest
plummeted by 34.2 percent to a rate of 50,000.
The Commerce Department also said the median sales price of new
houses sold in October was $493,000, up 8.2 percent from $455,700
in September and up 15.4 percent from $427,300 a year ago.
The estimate of new houses for sale at the end of October was
470,000, representing 8.9 months of supply at the currents sales
rate. The months of supply is down from 9.4 in September but up
from 6.9 in October 2021.
"New home sales make only a small contribution to GDP growth so
the upside surprise won't result in any significant change to our
forecast," said Nancy Vanden Houten, Lead U.S. Economist at Oxford
"We expect sales to remain under pressure going forward as the
erosion in affordability this year keeps many buyers on the
sidelines," she added. "However, the more recent decline in
mortgage rates, if sustained, will boost affordability at the
Last Friday, the National Association of Realtors released a
separate report showing a substantial decrease in U.S. existing
home sales in the month of October.
NAR said existing home sales plummeted by 5.9 percent to an
annual rate of 4.43 million in October after slumping by 1.5
percent to a rate of 4.71 million in September.
Existing home sales decreased for the ninth consecutive month,
resulting in a 28.4 percent nosedive compared to the same month a
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