US: new real estate sales reach peak level in 10 years
By: Sabrina Orlov •
US purchases of new homes unexpectedly advanced rapidly last October, reaching the strongest pace in a decade and offering an encouraging sign for residential construction. The data comes from the National Association of Realtors released this week.
Sales of single-family homes have jumped 6.2% month-on-month to $236,000, the largest advance since October 2007. These results are signs that residential construction is expected to strengthen in the coming months as companies take care of filling work orders.
Sales of new homes, tabulated when contracts are signed, represent about 10% of the market. They are considered a more temporary barometer than the purchases of used homes, which are calculated when the contracts close and are reported to the Association. Numbers are volatile from month to month.
Purchases in the South increased for the third month, to the fastest pace in 10 years. The average sales price increased 3.3% per year to $ 312,800.
The supply of homes at the current sales rate fell to 4.9 months, the lowest since July 2016, 5.2 months.
Purchases in the Midwest rose 10.6% in September and rose 2.9% in the West.
As the Commerce Department showed, more than 90 percent were confident that the change in sales last month ranged from a 0.1 percent drop to a 37.9 percent increase, underscoring the volatility of the report data released jointly by the Census Bureau and Department of Housing and Urban Development in Washington.
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