New Home Sales Hover At 14-Year Highs, Average Price Plunged

After existing home sales (surprisingly) smashed expectations, new home sales were expected to rebound from their 3.5% MoM drop in September. The picture was less clear however with October’s new home sales sliding from an upwardly revised 1.002mm in September to 999k in October.

New Home sales hovered around the 1mm mark, at 14 year highs…

Source: Bloomberg

In fact, the last 3 months of home sales were all revised higher:

• July from 965K to 979K

• August from 994K to 1001K

• September from 959K to 1002K

And while off their peak, new home sales rose 41,5% YoY…

The median new home price dipped from $331.6K to $330.6K

…but the average price plunged more from a record $403.9K to $386.2K…

As 16% of new homes sold in Oct. cost more than $500,000, down from 20% prior month.