The Census Bureau and the Department of Housing and Urban Development reported that new home sales rose to a 10-year high in October. New single-family residential sales jumped from an annualized 645,000 units in September to 685,000 in October, an increase of 6.2 percent and the best reading since October 2007.
Sales of new single-family homes grew in every region of the country, with the largest gains in the Midwest and Northeast. With the steep increase in the past two months, new home sales have risen 18.7 percent since the 577,000 pace in October 2016.
With strong sales growth, inventories of new homes for sale tightened considerably for the month. In October, the number of months of supply on the market fell from 5.2 to 4.9, its lowest rate since July 2016. The average sales price was $400,200 in October, up 13.6 percent from $352,200 one year ago.