There were 679,000 (SAAR) new single family-home sales nationwide in October down 5.6% from the revised September rate of 719,000 and up 17.7% from October 2022, according to the U.S. Census Bureau.
The median sales price of new houses sold in October was $409,300.
The seasonally-adjusted estimate of new houses for sale at the end of October was 439,000, a supply of 7.8 months at the current sales rate.
What happened: As expected, new home sales fell in October. The rapid increase in interest rates weighed down demand in October.
Why it matters: Given the low supply of existing homes coming on the for-sale market, new construction has helped to fill gaps. As a result, sales of newly built homes have increased in the past year while existing-home sales fell.
Despite the October slowdown, new home sales are likely to remain an important driver of home sales headed into next year. Not only have mortgage rates already fallen from their October peak, but builders are also making the math work for prospective home buyers by offering a combination of small price cuts and other incentives – such as rate buydowns and closing cost credits.