New home sales blew away all expectations by increasing +41% y/y in October.
New Home Sales Up +41% y/y in October
The sale of new homes exploded in October by increasing a whopping +41% y/y.
This number is based upon signed contracts, not yet completed new homes.
Average Price of New Homes Up
The average price of a new home came in at $330,600 in October, up from $322,400 in September.
Of course, new home builders had to increase their prices in October…labor was more expensive, supplies were more expensive, and land was more expensive in October than in September.
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One Area of Concern – Supply
The supply of new homes fell from a 3.6-month supply in September to a 3.3-month supply in October.
Due to slower deliveries and supply chain bottlenecks, builders simply can’t build to demand without key materials. Robert Dietz, chief economist with the National Association of Homebuilders, believes that supply chain problems are going to continue into 2023.
With more than 60% of new homes but not yet built, will consumers sign the dotted line for something they can’t move it to for one, two or three years from now?
Home Builder Confidence Up
With such blow-away new home sales in October, of course homebuilder confidence levels increased in October after three consecutive months of declines. According to the National Association of Home Builders, the consumer confidence index rose to 76.9, the strongest and highest index level in months.
Thanks to the National Association of Home Builders and CNBC.