Arrow-right Camera
The Spokesman-Review Newspaper

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Partly Cloudy Day 28° Partly Cloudy
News >  Business

U.S. new homes sales increase 0.4% in October as prices climb

UPDATED: Wed., Nov. 24, 2021

A sold sign is posted Sept. 6 outside a house in Pittsford, New York. New-home sales in October were down 23% from a year earlier, according to the U.S. Commerce Department.  (Associated Press)
A sold sign is posted Sept. 6 outside a house in Pittsford, New York. New-home sales in October were down 23% from a year earlier, according to the U.S. Commerce Department. (Associated Press)
By Paul Wiseman Associated Press

WASHINGTON – U.S. sales of new homes edged up 0.4% last month, coming in below expectations as housing prices continued to climb.

The Commerce Department reported Wednesday that sales of new single-family homes increased to a seasonally adjusted annual rate of 745,000 last month from 742,000 in September.

Economists had expected October new-home sales to meet the 795,000 annual pace. And the September sales rate was revised sharply lower from 800,000 in Commerce’s original report.

New-home sales were down 23% from a year earlier.

The median price of a new home, the point where half the homes sold for more and half for less, rose to a record $407,700 last month, up nearly 18% from a year earlier.

New-home sales rose 11% from September to October in the Midwest and 0.2% in the South. They fell 11.8% in the Northeast and 1.1% in the West.

The housing market has been hot, thanks to rock-bottom mortgage rates and pent-up demand from consumers locked in last year by the pandemic.

On Monday, the National Association of Realtors reported that sales of previously occupied homes rose 0.8% last month to a seasonally adjusted annual rate of 6.3 million, strongest annual pace since January.

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Active Person

Subscribe to the Coronavirus newsletter

Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.