US New Homes Sales Rise 0.4 Percent in October as Prices Climb

People walk by a sold sign in front of a house along the Erie Canal in Pittsford, N.Y., York, on Sept. 6, 2021. (Ted Shaffrey/AP Photo)

WASHINGTON—U.S. sales of new homes edged up 0.4 percent last month, coming in below expectations as housing prices continued to climb.

Commerce Department reported Wednesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 745,000 last month from 742,000 in September. Economists had expected October’s new home sales to come in at a 795,000 annual pace. And the September sales rate was revised sharply lower from 800,000 in Commerce’s original report.

New home sales were down 23 percent from a year earlier.

median price of a new home, the point where half the homes sold for more and half for less, rose to a record $407,700 last month, up nearly 18 percent from a year earlier.

New home sales rose 11 percent from September to October in the Midwest and 0.2 percent in the South. y fell 11.8 percent in the Northeast and 1.1 percent in the West.

housing market has been hot, thanks to rock-bottom mortgage rates and pent-up demand from consumers locked in last year by the pandemic.

On Monday, the National Association of Realtors reported that sales of previously occupied homes rose 0.8 percent last month to a seasonally adjusted annual rate of 6.3 million, the strongest annual pace since January.

By Paul Wiseman

Pezou : US New Homes Sales Rise 0.4 Percent in October as Prices Climb