ARLINGTON, Va.—New-home sales rose 6.2% from September – the fastest sales pace since October 2007.
However, the housing market continues to be constrained due to lack of affordable inventory, said NAFCU Research Assistant Yun Cohen in a NAFCU Macro Data Flash report.
"Sales of properties where construction has not yet started rose 34.2% during the month, which indicates strong buyer demand and likely some storm-related construction backlogs," Cohen said. "While inventory level rose to an eight-year high in October, it was outpaced by sales growth and the market continued to tighten."
According to the Census Bureau, October's new-home sales represent an 18.7% increase from a year ago. Sales improved in all four regions in October: the Northeast rose 30.2%, the Midwest 17.9%, the West 6.4% and the South 1.3%, Cohen noted.
Based on current-month sales, there were 4.9 months of supply in October, down from 5.2 months in September. The median new-home price, non-seasonally adjusted, decreased from $324,900 in September to $312,800 in October. October's prices were 3.3% higher than a year ago, Cohen explained.