• New home sales jumped 10.7 percent month-over-month in October to 495,000 units (SAAR), according to the Census Bureau, reversing most of the previous month’s decline.
• New home sales figures for the past three months were revised downward by a combined total of 40,000 units, meaning there were roughly 8 percent fewer sales between July and September than previously reported.
• The median price of new homes sold fell year-over-year for only the second time since February 2012.

October new home sales rebounded from a disappointing September, increasing 10.7 percent to 495,000 units at a seasonally adjusted annual rate (SAAR) – almost exactly in line with expectations. Still, the October surge was insufficient to overcome a generally lackluster year.

For the third month in a row, new and existing home sales moved in opposite directions: Existing home sales, reported Monday, fell 3.4 percent from September.

New home sales have been volatile in recent months, but have trended downward through the first ten months of 2015. The number of new homes sold in October was below the number sold in all but two months this year (figure 1), and is at the same level as November 2014. New home sales have remained below the 500,000 level (SAAR) for two months in a row. The most recent recession and recovery aside, the last time this occurred was between September 1990 and January 1991.

Downward revisions to the number of new homes sold between July and September should serve to temper some of the generally well-received news of a strong October increase. September new home sales were revised downward from 468,000 units (SAAR) to 447,000 units. August new home sales were revised downward from 529,000 units (initially reported at 552,000 units in September) to 513,000 units. July sales were revised downward from 503,000 units (initially reported at 522,000 units in August) to 500,000 units. Together, the combined revisions mean there were 40,000 (about 8 percent) fewer new homes sold during the past three months than reported in October.

The median seasonally adjusted price of new homes sold in October was $294,000, down 6.7 percent from $304,500 in September and down 5.9 percent from $301,900 a year earlier. It was the first year-over-year decline in the median sales price since September 2014, and only the second year-over-year decline since the housing recovery took root in February 2012.