DID YOU KNOW? Sales of NEW U.S. single-family homes dropped 8.9% to a 2½-year low in October amid sharp declines in all four regions: higher mortgage rates combined with high prices are hurting the housing market:
- House prices increased 5.1% year-on-year in September while wages rose 3.1% in October from a year ago.
- September's sales pace was revised higher to 597,000 units from the previously reported 553,000 units.
- New home sales have dropped in 4 of the last 6 months. New home sales are drawn from permits and tend to be volatile on a month-to-month basis decreasing 12% from a year ago.
- New home sales in the South (the bulk of transactions), declined 7.7% to their lowest level since July 2017.
- Sales fell 3.2% in the West and plunged 18.5% in the Northeast to their lowest level since September 2015. Midwest sales were down 22.1% to a 2½-year low.
- The median new house pricing fell 3.1% to $309,700 in October from a year ago.
- Supply is, however, just over HALF of what it was at the peak of the housing market boom in 2006.
- Nearly two-thirds of the houses sold last month were either under construction or yet to be built. (CNBC)