The numbers: U.S. new home sales rose 0.4% to a seasonally-adjusted annual rate of 745,000 in October from 742,000 in the prior month, the Commerce Department said Wednesday.
Because of a small sampling size, the sales data are often revised sharply. Sales in September were originally estimated at 800,000.
Analysts polled by The Wall Street Journal had forecast new-home sales in October to remain steady at an 800,000 rate.
Key details: The median sales price of new houses sold in October was $407,700 marking a new record high. The supply of new homes for sale rose by 3.3% between September and October, equating to a 6.3-month supply.
Regionally, sales were strong in the Midwest and rose slightly in the South while declining in the Northeast and West.
Big picture: In a market where housing costs continue to rise, new home sales play an important role. One of the major reasons why home prices keep increasing is that there simply aren’t enough homes around to meet buyer demand. A hesitancy on the part of existing homeowners to list their properties for sale has exacerbated the inventory crunch for well over a year now, stoking competition among buyers that has driven prices skyward.
