New Home Sales decrease to 679,000 Annual Rate in October

The Census Bureau reports New Home Sales in October were at a seasonally adjusted annual rate (SAAR) of 679 thousand.

The previous three months were revised down.

Sales of new single‐family houses in October 2023 were at a seasonally adjusted annual rate of 679,000, according
to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban
Development. This is 5.6 percent below the revised September rate of 719,000, but is 17.7 percent above the October 2022 estimate of 577,000.
emphasis added

New Home SalesClick on graph for larger image.

The first graph shows New Home Sales vs. recessions since 1963. The dashed line is the current sales rate.

New home sales are close to pre-pandemic levels.

The second graph shows New Home Months of Supply.

New Home Sales, Months of SupplyThe months of supply increased in October to 7.8 months from 7.2 months in September.

The all-time record high was 12.2 months of supply in January 2009. The all-time record low was 3.3 months in August 2020.

This is above the top of 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 439,000. This represents a supply of 7.8 months at the current sales rate.”

Sales were well below expectations of 730 thousand SAAR, and sales for the three previous months were revised down. I’ll have more later today.