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- US new-home sales experienced its strongest two-month stretch since July 2007, Bloomberg first reported Tuesday.
- Single-family house sales hit a 733,000 annualized pace in October, according to government data released on Tuesday.
- September’s rate was also revised up to 738,000, from an earlier reading of 701,000.
- The median selling price for new homes in October sank 3.5% from the same period last year to $316,700.
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US buyers are grabbing up new homes at the fastest pace in more than 12 years.
According to government data released on Tuesday, US new-home sales reached a 733,000 annualized pace in October. The US Census Bureau also revised its September reading up to 738,000, from an initial reading of 701,000.
The two-month stretch is the strongest the market has seen since July 2007, Bloomberg first reported Tuesday. October’s rate handily surpassed the 705,000 figure projected by economists in a Bloomberg survey.
The median selling price for a new home in October was $316,700, down 3.5% from the same month last year. The supply of new houses for sale settled at 322,000 at the end of October, the data showed. That supply is expected to last about 5.3 months if the current pace of buying continues.
Sales for houses that have yet to be built increased to 250,000, the highest level since 2007.
US consumers appear to be more eager to splurge on new homes amid a strong job market, wage gains, and the Federal Reserve’s effort to lower borrowing costs. The relatively tight supply is bolstering prices and offsetting some of the appeal from lower rates, according to Bloomberg.
Despite the momentum in purchases, the annualized rate of new-home sales is still considerably below the peak of 1.39 million hit in the early 2000s housing boom, Bloomberg reported.
The new-home sales data is compiled and published by the US Census Bureau and the Department of Housing and Urban Development on a monthly basis. The next reading is scheduled to be released on December 23.