- New home sales declined 8.9% month-over-month in October to a seasonally adjusted annual rate of 544,000 (Briefing.com consensus 575,000). September was revised up to 597,000 from 553,000.
- New home sales were down 18.5% month-over-month, and 46.3% year-over-year, in the Northeast; down 22.1% month-over-month, and 16.7% year-over-year, in the Midwest; down 7.7% month-over-month, and down 11.6% year-over-year, in the South; and down 3.2% month-over-month, and down 1.3% year-over-year, in the West.
- At the October sales pace, there is a 7.4 months' supply of new homes for sale, which is the highest supply level since January 2011. The increase in supply should presumably be a precursor to lower prices that will crimp profit margins for homebuilders.
- The median sales price in October was down 3.1% year-over-year to $309,700 while the average sales price was up 0.3% to $395,000.
- In what is a likely nod to affordability constraints presented by rising mortgage rates, homes priced at $400,000 or more accounted for 28% of new homes sold in October versus 33% in September.
- Regardless of the upward revision to September, the key takeaway from the report is that the pace of new home sales is weak across all regions and reflects the affordability constraints fueled by rising mortgage rates. The October sales pace is the slowest since March 2016.
|Median Price Y/Y||-3.1%||-3.1%||3.1%||1.4%||-1.5%|