• October new home sales jumped 6.2 percent from September, to 685,000 units (SAAR), beating expectations and turning in a second straight strong month according to the U.S. Census Bureau.
• The median, seasonally adjusted price of new homes sold in October fell to $315,200, down from 2017 highs set in September and in line with levels seen throughout the year.
• There are more new homes available for sale nationwide (282,000) than at any point since May 2009.

Here’s hoping that two surprisingly strong months in a row of new home sales is a sign of things to come from builders as we look ahead to 2018. There is much to be encouraged about by October’s numbers: Inventory is up, prices came down somewhat from highs set earlier this year and the bulk of sales activity was in the relatively affordable $200,000-$400,000 price segment. To date, the number of new homes built each year has remained well below historical norms – and it’s been concentrated in more profitable, higher price segments. That dynamic is hopefully starting to change for a simple reason: The market is starving for affordable new homes, and builders cannot and will not ignore this hungry market. Still, it won’t be easy for builders rocked by difficult market conditions. Land, labor and lumber prices are only expected to keep rising, which will force those builders looking to meet market demand to search for less expensive development options farther away from urban job cores. In 2018, aging millennials and young families may be able to find more affordable new homes for sale, but they’ll most likely be in farther-flung suburbs that so far haven’t proven especially attractive to picky younger buyers.