New home sales moved up in October, according to recent data released by the United States Department of Commerce.
The increase reflected sales up 1.3 percent from Septembers 303,000 annual rate, the latter of which was downwardly revised after the last data release. New home sales were up nearly ten percent (8.9) from October 2010, and settled at a seasonally-adjusted rate of 307,000 per annum. The rate of a healthy market is, according to analysts, about 750,000 units per year.
Despite ongoing price pressure from distressed properties and inhibited consumer interest, some homebuilders have begun to find sweet spots in certain areas of the country, reflecting the local nature of housing. Markets in places like California, Florida, Texas and North Carolina have rebounded somewhat due to relative increased affordability or resilient labor markets, even as home prices in some major metropolitan areas have sagged.
To whit, the recent report on New Residential Sales showed sales up by 14.9 percent and 22 percent in the West and Midwest respectively, while the South (the countrys largest region) saw a drop in sales of 9.5 percent. Sales in the Northeast, which had seen low demand, were flat in October.
The median sales price of new homes sold in October was $212,300, up nearly $8,000 from a year ago, but down slightly from September. The average sales price was $242,300.
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