New home sales not only beat expectations but were positive in November, according to the latest data from the Census Bureau.
- M-O-M: Sales of new single‐family houses increased 7.5% to a seasonally adjusted annual rate of 632,000 in October.
- Y-O-Y: Despite the big monthly increase, sales are still down 5.8% when compared to October 2021.
Swing & A Miss. Economists had projected that sales would fall 5.7% in October to 570k.
Southern Dominance. The South continues to dominate with an annual pace of 399k in October, this represents 63.1% of all new home sales for the year.
- The West took the number two spot with an annual pace of 132k followed by the Northeast (51k) and the Midwest (+50k).
Prices Up. The median sales price of new houses sold in October 2022 was $493,000, a 4.8% increase from September.
- The average sales price was also up to $544,000, this is a 5.1% increase from September.
Inventory. The seasonally‐adjusted estimate of new houses for sale at the end of October increased slightly to 470,000. However, because the pace of sales increased the months supply fell to 8.9 from 9.3 in September.
BOTTOM LINE: Demand for homes remains relatively strong. Unlike 2008, this current housing downturn is a not a systematic distrust in housing. As rates and home prices fall in the coming months homes that are prices correctly are going to sell and fast.