New-Home Sales Are Still Ultrahigh. Properties Are Scarce.

Text size

Only 44,000 homes ready for occupants were on the market at the end of October.


Justin Sullivan/Getty Images

New-home sales remained sky-high in historical terms in October as properties changed hands at a seasonally adjusted annual rate 41.5% above the year-earlier level, according to government data.

Sales slipped 0.3% to an annual rate of 999,000 from a revised September rate of 1,002,000, according to figures the Census Bureau and the Department of Housing and Urban Development released on Wednesday. The consensus call among Wall Street economists was for sales of 972,500.

The last time the October rate exceeded 999,000 was in 2005, before the 2008-2009 financial crisis, according to historical data. Year to date, new home sales are 20.6% higher than last year, according to the data.

Demand for a home has far outstripped supply. While new-home sales are high, the number of homes coming on the market

Read More

U.S. New-Home Sales Remain Elevated in October at 999,000 Pace

(Bloomberg) — New-home sales in the U.S. held up in October, remaining near the best pace since 2006 and well above pre-pandemic levels, the latest sign that record-low mortgage rates are underpinning robust buyer interest.

Purchases of new single-family houses dropped 0.3% from September to a 999,000 annualized pace from an upwardly revised 1.002 million rate, government data showed Wednesday. The median forecast in a Bloomberg survey of economists called for a 975,000 rate. The median selling price rose 2.5% from a year earlier to $330,600.

Follow reaction in real time here on Bloomberg’s TOPLive blog

Recent momentum in housing has been driven by attractive mortgage rates and buyers looking for more space as they work from home. Purchases, however, may face greater headwinds after infections began to soar around the U.S. in recent weeks and new restrictions threatened to curb hiring.



chart: New U.S. home sales fell 0.3% in October from prior month despite record-low rates


© Bloomberg
New U.S. home sales fell 0.3%

Read More

Single-Family New-Home Sales Remain Strong in October

Sales of new single-family houses dipped slightly in October but is still 41.5% above October 2019’s estimate of 706,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. New-home sales last month were at a seasonally adjusted rate of 999,000, 0.3% lower than the revised September rate of 1,002,000.

The continued elevated new-home sales follows other strong residential market indicators for the month of October. Zonda reported this week that pending new-home sales were tracking higher year over year in nearly every top U.S. market. And existing home sales were up 26.6% from a year ago, according to the National Association of Realtors.

According to the data, the median sales price of new houses sold in October was $330,600, while the average sales price was $386,200.

The seasonally adjusted estimate for new homes for sale was 278,000 at the end of October, representing a 3.3-month

Read More

New-home construction surges to post-Great Recession high in October, driven by rise in single-family starts

ECONOMIC REPORT



a man with a sunset in the background: The pace of home construction continued to increase in October, a reflection of Americans’ strong interest in buying homes thanks to low mortgage rates.


© Getty Images
The pace of home construction continued to increase in October, a reflection of Americans’ strong interest in buying homes thanks to low mortgage rates.

The numbers: U.S. builders started construction on homes at a seasonally-adjusted annual rate of 1.53 million in October, representing a 4.9% increase from the previous month’s figure, the U.S. Census Bureau reported Wednesday.

Loading...

Load Error

Permitting for new homes occurred at a seasonally-adjusted annual rate of 1.545 million in October, unchanged from September.

Economists polled by MarketWatch had expected housing starts to occur at a pace of 1.49 million and building permits to come in at a pace of 1.57 million.

What happened: The upsurge in housing starts was driven by a 6.4% rise in single-family starts, as multifamily construction activity dipped once again, this time by 3.2%.

All regions except the Northeast experienced an increase in housing starts despite rising

Read More

Here’s How AI Makes A New-Home Hunt About As Fun As Dating

New home building is riding a torrid—counter-pandemic, safe-haven-fueled—sales pace. This attests to the way many firms in this trillion-dollar sector have blasted into the millennium’s technological present, and they’d like to believe that present has nothing but running room ahead. Note, though, the millennium dawned two decades ago. Builders would mostly admit they’ve got plenty of catching up to do, mostly on the customer-friendly user experience front, to make buying, owning, and building value in a home, um, less painful.

Still, feats of selling technology and process leaps and bounds they’ve accomplished in the pandemic time-warp have transformed a typical new-home hunt. Now, it’s less a grueling test of intestinal fortitude and more something resembling, well, shopping for just about everything else.

Read More

New-home sales skyrocket year over year

New-home sales fell 3.5% from August last month but still far exceeded the sales pace in September 2019, according to new data from the Department of Housing and Urban Development and the US Census Bureau.

Sales of newly built, single-family homes fell to an annual pace of 959,000 in September, a 3.5% drop from a downwardly revised August number. Despite that, the September rate is 32.1% higher than the pace in September 2019, and new home sales are up 16.9% in 2020 on a year-to-date basis.

“With sales up 32% from a year ago, the demand for new single-family homes remains strong as interest rates are at historic lows,” said Chuck Fowke, chairman of the National Association of Home Builders. “However, the recent run-up in lumber and other material costs is leading to an increase in pricing.”

“The pace of new-home sales growth over the summer was going to slow

Read More

Number of New-Home Sales Dips Slightly in the U.S.

After recording four consecutive months of increases, the number of newly built single-family homes sold in the U.S. dipped in September, according to a report released Monday by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.

There were 959,000 sales of new single-family houses in September, 3.5% below August’s number of 994,000 and the lowest total since June, according to the data, which is seasonally adjusted to account for predictable and regular annual fluctuations in the housing market.


Despite the slight dip, September’s newly constructed family home transactions remained a notable 32.1% above the level recorded in 2019, when there were approximately 726,000 new single-family homes changing hands. 

The boom compared to last year reflects the surge of demand for homes that has emerged following coronavirus lockdowns. Buyers, having spent increased time indoors because of the pandemic, have reassessed their housing needs. More square footage,

Read More

September new-home sales fall 3.5% after strong summer season

CHARLOTTE, N.C. — Sales of new homes fell by 3.5% in September to a seasonally-adjusted annual rate of 959,000 million units, the Commerce Department said Monday, as the housing market’s hot summer buying season cooled.

The Commerce Department said Monday that despite the modest decrease, sales of new homes are up 32.1% from a year earlier. However, the pandemic may start to weigh on the market as the colder winter months arrive and with coronavirus cases spiking across much of the U.S.

“While strong demand and low mortgage rates are supportive of home sales, the resurgence in Covid-19 cases, a recovery that may be shifting into reverse and a weak labor market pose downside risks,” said Nancy Vanden Houten with Oxford Economics, in an email.

The housing market, like most of the economy, came to a near standstill in March and in April, causing the typical spring summer buying season

Read More

U.S. New-Home Sales Fell Slightly in September, Remain Elevated

(Bloomberg) — New-home sales in the U.S. fell slightly in September, while remaining elevated, suggesting demand is being restrained by lean inventory despite record-low mortgage rates.

Purchases of new single-family houses dropped 3.5% from August to a 959,000 annualized pace from a downwardly revised 994,000 rate, government data showed Monday. The median forecast in a Bloomberg survey of economists called for a 1.03 million rate of sales in September. The median selling price rose 3.5% from a year earlier to $326,800.



chart: U.S. new-home sales slowed in September as inventory remains lean


© Bloomberg
U.S. new-home sales slowed in September as inventory remains lean

Extremely low borrowing costs and greater buyer appetite for suburban properties has powered residential investment and is seen adding to third-quarter economic growth. The Federal Reserve has signaled it expects to hold interest rates near zero at least through 2023. At the same time, a recent decline in mortgage applications — to the lowest level since July

Read More