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WASHINGTON (Nov 29): According to the US Commerce Department, sales of newly-built single-family homes in October rose 1.3% to a seasonally adjusted rate of 307,000 units compared to the previous month's downwardly revised rate. The gain marks the best pace for new-home sales activity since May of this year.
National Association of Home Builders (NAHB) chairman and Reno home builder Bob Neilsen said that sales activity over the past few months are seeing some improvements in select markets. "Builders have been seeing some marginal improvement in sales activity over the past few months, particularly in select markets where consumer confidence is higher due to improved economic conditions.
"While this trend is encouraging, overall sales activity is still well below normal due to the effects of overly tight credit conditions for builders and buyers, the continued flow of distressed properties on the market, and inaccurate appraisal values on new homes," he said.
NAHB chief economist David Crowe adds that the report is in line with their forecast for modest and gradual improvement in sales activity through the remainder of the year.
"Particulartly encouraging is the fact that builders continue to hold down their inventories to match the current sales rate, with the number of new homes for sale now down to a sustainable, 6.3-month supply."
October new-home sales in the Northeast remained unchanged, while Midwest and West new-home sales gained 22.2% and 14.9% respectively. While other regions see a rise in new-home sales, the South recorded a decline of 9.5%.
Meanwhile, the inventory of new homes for sales nationwide are at a record low with just 162,000 units in October which is a mere 6.3-month supply at the current sales pace.
The Washington-based NAHB represents more than 160,000 home builders involved in remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction.
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