Sales of New Homes Slipped in October
Sales of home builder new homes fell 2 percent in October, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. But, despite the month-over-month dip, sales were still strong when compared to the same time last year. In fact, October sales were 17.8 percent higher than the year before.
Part of the reason for this is that monthly sales figures are typically volatile, while year-over-year numbers provide a better look at the big picture. And so far this year, low mortgage rates, a stronger labor market, and high buyer demand have led to overall gains in both new and existing home sales that should push sales to levels last seen before the housing crash.
According to Doug Berson, chief economist at Nationwide, there may be reason to expect more improvement in the future. Berson told ABC News the millennial generation should provide increasing demand for single-family homes in the years ahead. “Historically, there is a significant uptick in homeownership at the age of 35 – an age that the oldest millennials are reaching now,” Berson said. Regionally, new home sales were down in the Northeast, Midwest, and South, while the West saw improvement.