Sales of new single-family homes in the U.S. surged during October and the overall inventory of the properties available for sale was at its highest since the early part of 2010.
That could allay the concerns of a big slowdown in the housing market.
The U.S. Commerce Department said Wednesday sales had increased by 10.7% to an annual rate seasonally adjusted to 495,000.
September’s sales pace also was revised down to a total of 447,000 units from a previously reported units’ measure of 468,000.
Economists polled forecasted that sales of new homes, which account for close to 8% of the overall housing market, rebounded to 500,000 units. Sales were at 4.9% compared to last year during October.
Though, the new home sales are usually more volatile from month to month due to being taken from such a small sample. October’s rebound should offer a bit of assurance that the U.S. housing market has remained on solid ground even though there have been some declines in September in re-sales of homes, starts in housing and confidence amongst builders.
Sales of new homes were up by a record of 135.3% in the Northeast to the highest level since January of 2010.
Sales rose by 8.9% in the South and by 5.3% across the Midwest. They were down by 0.9% out West. The inventory of all new homes for sales increased last month to 1.3% or 226,000, the highest that has been since March of 2010.
Supply remains less than 50% of what it had been at its height of the housing boom. At the sales pace of October, it would take just over 5.5 months to clear the inventory of available homes for sale currently on the market, which is lower than September’s 6.0 months.
The average price for a new home was lowered by 6% compared to the same time one year ago at $281.500.