New Home Sales, which measure signed contracts on new homes, plunged 17.3% from September to October, with the 610,000-unit pace reaching the lowest level since November 2022. Signed contracts were also 9.4% lower than they were in October of last year. Regarding inventory, there were 481,000 new homes for sale at the end of October, which was up slightly from 471,000 in September. However, only 113,000 were completed, with the rest either under construction or not even started yet, so moreavailable supply is still needed.
What’s the bottom line? Almost the entire decline in October’s signed contracts came in the South, which was severely impactedby Hurricanes Helene and Milton during this time. In addition, rates moved higher in October while some buyers also mentionedthey were staying on the sidelines until after the election.
These factors combined all contributed to October’s decrease in activity for new construction homes.