New-Home Sales Post Big Rebound
New-home sales for single-family homes zipped ahead 10.7 percent in October, finally a major sign that backs up the sentiment from builders that the sector is on the mend. The Commerce Department reported that newly built, single-family homes rose to a seasonally adjusted annual rate of 495,000 units in October.
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“Our builders are reporting continued optimism in the housing market, and are adding inventory in anticipation of future business,” says Tom Woods, chairman of the National Association of Home Builders.
So far, sales are running nearly 16 percent ahead of 2014, according to NAHB’s Chief Economist David Crowe.
“With a firming job market, affordable home prices, and rising pent-up demand, [the latest] report is another indicator that the housing market continues to move on a modest upward trajectory,” Crowe says.
Regionally, new-home sales surged 135.3 percent month-over-month in the Northeast in October, followed by an 8.9 percent gain in the South and 5.3 percent increase in the Midwest. Sales dropped 0.9 percent in the West.
The inventory of new homes for sale was 226,000 units in October, or a 5.5-month supply at the current sales pace.
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