After sales for new construction homes slipped in September, findings show sales bounced back significantly in October. The US Census Bureau and Department of Housing and Urban Development (HUD) released current estimates that sales jumped 10.7 percent in October as compared to September, and are currently 4.9 percent above the same time period just one year ago.
The rebound clearly indicates the real estate housing market is still on solid footing even with declines in builder confidence, housing starts and sales for existing homes. In addition, the total number of new homes for sale increased in October, achieving a record high not seen since March 2010. An increase in inventory is welcoming news as buyers have more choices and options to choose from, it balances out the housing market and helps keep prices in check.
A more detailed look at figures indicates that prices for new home construction have dropped when compared to last year. The median price (halfway mark) for a new construction home dropped 6 percent, down to $281,500.
Regional findings show a record sales increase in the Northeast, where sales climbed 135.3 percent. Sales were also up in the Midwest and Souther states, but fell slightly in the West.
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