New home sales down 1.9 percent in October

Sales of newly built, single-family homes fell 1.9 percent in October from a downwardly revised September reading to a seasonally adjusted annual rate of 563,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“Though slightly down from last month, new home sales have been on an upward trend since last year,” National Association of Home Builders chairman Ed Brady said in a statement.

“Builders are adding to inventory based on consistent gains in sales, solid builder confidence and ongoing job and economic growth,” NAHB chief economist Robert Dietz added.

The inventory of new home sales for sale was 246,000 in October, which is a 5.2-month supply at the current sales pace. The median sales price of new houses sold was $304,500.

Regionally, new home sales fell 9.1 percent in the Northeast, 13.7 percent in the Midwest and 3 percent in the South. Sales increased 8.8 percent in the West.