Sales of newly constructed, single-family houses climbed by more than 25% in October to an adjusted annual rate of 444,000 units, the government has announced.
The U.S. Department of Housing and Urban Development and the U.S. Census Bureau had reported a 6.6% decline in September, so October’s surge was welcome news for the National Association of Home Builders.
In a news release, NAHB chairman Rick Judson said, “The October sales numbers show that there is clearly a demand for new housing and the recovery remains on track. However, the recovery continues to be slowed by political uncertainty in Washington and ongoing constraints builders face with regard to tight credit conditions for consumers and the availability of labor, lots and materials.”
David Crowe, NAHB’s chief economist, said he expected sales would continue to rise as the market reacted to pent-up demand.
Sales increases were strongest in the Midwest, which showed a 34% gain from September to October. The South was next with 28%, followed by the Northeast (19%) and the West (15%).
Leading Markets Index shows ‘slow, gradual climb’
Separately, NAHB has announced that the most recent NAHB/First American Leading Markets Index found 54 of roughly 350 metro areas in the country had returned to or exceeded normal levels of economic and housing activity.
Smaller metro markets accounted for most of the 54 and are “leading the way, particularly where energy is the primary economic driver,” Crowe said. That was the case in states such as Texas, Louisiana, North Dakota, Wyoming, and Montana, where energy is a big part of the economy.
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