Sales of new single‐family houses increased 0.4% in October 2021, posting a seasonally adjusted annual rate of 745,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. This is 23.1% below the October 2020 estimate of 969,000.
Market breakdown:
New-Home Sales: 745,000
For-Sale Inventory: 389,000
Months’ Supply: 6.3
Median Price: $407,700
What the industry is saying:
“After a significant increase in September, new-home sales improved even further in October as buyers continue to show their appetite for new homes going into the holiday season. Despite the decline in starts this month, permitting and sales both remained strong, indicating that buyers are still seeking new homes, and the busier summer sales season may be extending later into fall and winter this year than is typical. The lack of resale homes on the market has continued to bolster demand for new homes, and builders are working to overcome supply chain issues to meet delivery dates. RCLCO expects home sales to remain strong to close out the year, making for an unusually busy for-sale market this holiday season.” — Kelly Mangold of RCLCO Real Estate Consulting
“New-home sales are expected to see little change in October, as an ongoing shift in preferences drives homebuyers to the suburbs where new home communities are more plentiful and the availability of existing homes for sale is still limited. New-home sales remain at an elevated pace, but are falling short of the level of activity seen one year ago. Rising home prices and mortgage rates mean higher monthly costs for buyers, who are likely grappling with budgets being squeezed by inflation for other goods and services, too.
“For homebuyers who felt frustrated by this year’s extremely limited supply of existing homes, new construction can seem like an attractive alternative. Months’ supply of new homes is notably higher than that of existing homes, which should mean more options relative to buyers on the hunt. However, digging in closer reveals an important catch. Many for-sale new homes are either under construction or not-yet-started. In other words, they’re not quite move-in ready, a less than ideal choice for home shoppers eager to get settled. For buyers with strict timelines and limited budgets, the existing home market may be a better choice, but those who can afford to wait may find relatively more options and somewhat less competition among yet-to-be-started new homes.” — Danielle Hale, realtor.com® Chief Economist
