New Home Sales Rate Reaches 10-Year High in October

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Good news for new home sales. According to this article from the National Association of Home Builders (NAHB) sales of new homes rose 6.2% to a 10 year high. This is great news, even for those of us who build townhouses and townhomes in Houston. The article is about single family homes but is still good news for the home building industry. The market is recovering and gotten a boost from the recovery efforts following the recent hurricanes in Houston and the golf. Additionally, housing starts are up considerably, a near post-recession high. Click here to read more from the National Association of Home Builders.

(NAHB), Sales of newly built, single-family homes in October rose 6.2 percent to a seasonally adjusted annual rate of 685,000 units from a downwardly revised September reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest sales pace since October 2007. Year-to-date, new home sales are 8.9 percent above their level over the same period last year.

“The October report shows strong sales growth at entry-level price points,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “In markets where builders are able to provide homes for families with different household budgets, they can fulfill a growing demand for housing.”

“There is solid growth in the number of sales contracts signed before construction has begun, a strong indicator that new single-family home production should continue to grow as we look ahead to 2018,” said NAHB Chief Economist Robert Dietz.

The inventory of new homes for sale was 282,000 in October, which is a 4.9-month supply at the current sales pace.

New home sales increased in all four regions. Sales rose 30.2 percent in the Northeast, 17.9 percent in the Midwest, 6.4 percent in the West and 1.3 percent in the South.

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