Despite labor shortages, new home sales increased in October.

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Despite labor shortages, new home sales increased in October.

Fresh single-family house sales increased 0.4 percent from the previous month, to a seasonally adjusted annual rate of 745,000 in October, according to new residential sales statistics. The Census Bureau and the Department of Housing and Urban Development jointly released the figures on Wednesday.

The predictions are 23.1 percent lower than the 969,000 forecast from October 2020. Furthermore, data is regularly updated at a later date due to tiny sampling numbers, as September’s sales figures were lowered to 742,000 units from the 800,000 units earlier reported.

The average new house sale price was $477,800. The year-over-year increase in the median sales price of new homes was 17.5 percent, to $407,700.

Home builders have been hampered by a lack of workers and back-ordered construction materials due to widespread labor shortages. This is an issue since development schedules are lengthening and new home prices are rising.

“New construction can seem like an alternative appeal” for individuals eager to move into new houses, according to Realtor.com’s chief economist Danielle Hale, but she warns that “many for-sale new homes are either under construction or not yet started.”

On December 23, the monthly new residential sales for November will be released.

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