In October, new home sales in the United States increased, despite high prices.
According to official statistics released Wednesday, new house sales in the United States increased slightly in October but fell short of analyst predictions as home prices reached a new high.
According to the Commerce Department, new home sales increased 0.4 percent last month to a seasonally adjusted pace of 745,000, falling short of experts’ expectations. In addition, the government revealed a significant negative revision to September’s sales.
The housing market is still strong, albeit sales have slowed compared to a year ago, when the epidemic was more disruptive to daily life, and prices have increased.
Limited supply, which grew little last month, has also hampered the market. According to the report, there is currently 6.3 months of supply available at current sale rates, up from 6.1 months in September.
In October, the average home price hit a new high of $477,800, up 21% from a year ago.
With robust demand, Oxford Economics’ Nancy Vanden Houten anticipated that sales would “increase marginally” in the fourth quarter, but that high prices “would send many buyers to the sidelines.”
However, according to Rubeela Farooqi of High Frequency Economics, some buyers may certainly hasten purchases in anticipation of rising financing rates.
“Prices remain high,” she wrote in a note, “but gradually expanding inventories should prevent future acceleration.” “At least some buyers should enter the market as fears of rising mortgage rates grow as the Fed taper.”