The previous three months were revised down significantly.
Sales of new single‐family houses in October 2021 were at a seasonally adjusted annual rate of 745,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 0.4 percent above the revised September rate of 742,000, but is 23.1 percent below the October 2020 estimate of 969,000.
The first graph shows New Home Sales vs. recessions since 1963. The dashed line is the current sales rate.
New home sales are now declining year-over-year since sales soared following the first few months of the pandemic.
The second graph shows New Home Months of Supply.
The all-time record high was 12.1 months of supply in January 2009. The all-time record low was 3.5 months, most recently in October 2020.
This is slightly above the normal range (about 4 to 6 months of supply is normal).
“The seasonally‐adjusted estimate of new houses for sale at the end of October was 389,000. This represents a supply of 6.3 months at the current sales rate.”
In October 2021 (red column), 59 thousand new homes were sold (NSA). Last year, 78 thousand homes were sold in October.
The all-time high for October was 105 thousand in 2005, and the all-time low for October was 23 thousand in 2010.
This was well below expectations of 801 thousand SAAR, and sales in the three previous months were revised down significantly. I’ll have more later today.