New single-family home sales in the United States reached their fastest pace for a decade in October, jumping 6.2% in just one month, the latest data shows.
In total, there were 685,000 new houses sold in October 2017 – the best figure since October 2007, according to seasonally-adjusted figures jointly released by the U.S. Census Bureau and the Department of Housing and Urban Development.
The figure is 18.7% above the October 2016 estimate of 577,000. Sales in the South rose 1.3% to 383,000, which is also a 10-year high.
The strong monthly rise was boosted by the strength of the economy and a shortage of residential properties for sale, which reached just 282,000, market experts believe.
The median sales price of new houses sold in October 2017 was $312,800. The average sales price was $400,200, which is a rise of 13.6% in the last year.
The seasonally-adjusted estimate of new houses for sale at the end of October was 282,000, which is a 4.9-months supply at the current sales rate – a low since July 2016.
Chris Rupkey, Chief Economist at Mitsubishi UFJ Financial Group in New York, says, “New home sales are a leading indicator and the jump in October sales are leading the economy higher as we finish out the year.”
Sales in parts of the country were held back in September by the Harvey and Irma hurricanes.