Ofir Levy's Blog

New-home sales spike nationwide

In March, local builders pulled more residential building permits than in the year before thanks to increased consumer confidence and household growth and record low mortgage interest rates.

New-home sales throughout the nation rose 25 percent in October — the biggest month-over-month increase in more than three decades — the U.S. Commerce Department said Wednesday.

That brought the October figure to a seasonally adjusted annual rate of 444,000. The big spike follows a 6.6 percent sales slip between August and September to an annual rate of 354,000. (The data was not available on at a state or local level.)

Year-over-year, the October sales figure was up 21.6 percent. The Commerce Department also said there were 183,000 new homes for sale at the end of October, representing a slim 4.9 month-supply.

What’s interesting to note is that despite strong sales and limited supply, new-home prices actually fell 4.5 percent during that September-October period to a median price of $245,800. The median new-home price for the Phoenix area was $279,147 in September, the most recent available data from Arizona State University.

Spending on new single-family construction also took a 0.6 percent dip month-over-month in October, the Associated General Contractors of America said this week.

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