Sales of new single-family homes were flat in October, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The seasonally adjusted annual rate of 999,000 was 0.3 percent below the September revised rate of 1,002,000, although it soared 41.5 percent above the October 2019 estimate.
“Buyer traffic remained strong in October even as the country’s attention was focused on the elections and policy issues going into 2021,” said NAHB Chairman Chuck Fowke. “Mortgage rates remain low and builder confidence is at an all-time high indicating that demand remains steady and sales will remain solid.”
Sales during the month were primarily in the Northeast and Midwest with sequential monthly gains of 5.1 percent and 11.2 percent, respectively. New home sales fell 2 percent in the South and 1.5 percent in the West.
Median sales price was $330,600 and the average sales price was $386,200. An estimated 278,000 new homes were for sale at the end of October, a tight 3.3-month supply at the current sales rate. Only 44,000 of the homes in the October inventory were finished and ready for occupancy.
“NAHB analysis showed that the gap between construction and sales was at an all-time high in early fall. Thus, the NAHB forecast contains an acceleration in single-family starts and some slowing of the pace of growth for new homes sale to allow a catch-up,” said NAHB Chief Economist Robert Dietz. “Demand remains strong as home buyers seek out lower density markets as part of the suburban shift.”
Sandy WilliamsRead more from Sandy Williams
Latest in Steel Markets
Global steel production inches up, China’s falls in October
Global steel output inched higher from September to October, even as production declined in China, the World Steel Association (worldsteel) said in its latest monthly report.
October US housing starts inch higher but remain down on-year
US housing starts crept higher for a second consecutive month in October. Starts were lower, however than the same month last year, according to the most recent data from the US Census Bureau.
Imports Fall in September, But Flat Rolled at Three-Month High
The decline in imports from August to September was more pronounced than license applications suggested earlier this month.
The first rule of Steel 101 is that you’re free to talk about Steel 101. We actually encourage it. Last week on Tuesday and Wednesday, SMU’s Steel 101 was held in Mt. Pleasant, S.C.
SMU Survey: Buyers Sentiment Indices Rise
SMU’s Current and Future Steel Buyers Sentiment Indices both increased this week, based on our most recent survey data. Every other week we poll steel buyers about sentiment. The Steel Buyers Sentiment Indices measure how steel buyers feel about their company’s chances of success in the current market, as well as three to six months down the road. We have historical data going back to 2008. Check our interactive graphing tool here.