New home sales still rising

Newly-built, single-family home sales were up 10.7 percent in October.

The U.S. Census and the U.S. Department of Housing and Urban Development recently released data showing that newly-built, single-family homes were at a seasonally adjusted annual rate of 495,000, an increase from September’s rate of 447,000. Compared to last October’s estimate of 472,000, sales are up 4.9 percent.

“Our builders are reporting continued optimism in the housing market, and are adding inventory in anticipation of future business,” said Tom Woods, chairman of the National Association of Home Builders (NAHB), and a homebuilder in Blue Springs, Mo.

Overall, new home sales were up in three out of the four regions, especially in the northeast. Sales were up 135.3 percent in the northeast, 8.9 percent in the south, and 5.3 percent in the midwest. However, sales fell nearly 1 percent in the west.

“Sales this year are running 15.7 percent ahead of 2014,” said NAHB Chief Economist David Crowe. “With a firming job market, affordable home prices and rising pent-up demand, today’s report is another indicator that the housing market continues to move on a modest upward trajectory.”

The median sales price of new houses sold in October was $281,500, and the average home sale price was $366,000.

The inventory of new homes for sale was 226,000 units in October, which is a 5.5-month supply at the current sales pace, according to the release.