New Home Sales Jumps 7.5% in October

This morning's release of the October New Home Sales from the Census Bureau came in at 632K, up 7.5% month-over-month from a revised 588K in September. The forecast was for 570K. The median home price is now at $493K.

Here is the opening from the report:

New Home Sales

Sales of new single‐family houses in October 2022 were at a seasonally adjusted annual rate of 632,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 7.5 percent (±20.8 percent)* above the revised September rate of 588,000, but is 5.8 percent (±19.6 percent)* below the October 2021 estimate of 671,000.

Sales Price

The median sales price of new houses sold in October 2022 was $493,000. The average sales price was $544,000. [Full Report]

For a longer-term perspective, here is a snapshot of the data series, which is produced in conjunction with the Department of Housing and Urban Development. The data since January 1963 is available in the St. Louis Fed's FRED repository here. We've included a six-month moving average to highlight the trend in this highly volatile series.

New Home Sales

Over this time frame, we see the steady rise in new home sales following the 1990 recession and the acceleration in sales during the real estate bubble that peaked in 2005. Since 2011, we have seen a similar rise that has only recently retracted.