Highlights
U.S. new home sales were little changed in October, when they edged down 0.1 percent to an estimated seasonally adjusted annual rate of 737,000 from 738,000 in September, beating the consensus expectation of 714,000 in an Econoday survey of forecasters.
The annual rate has held above 700,000 for three consecutive months and was up 18.7 percent on a year-over-year basis.
The regional picture shows sales increased 16.9 percent from September in the South to an annual rate of 513,000, while they decreased in all other regions: they were down 36.3 percent in the West, 14.3 percent in the Northeast and 9.0 percent in the Midwest.
The median sales price of new houses sold in October was $392,300, down 3.3 percent from $405,800 in September. The average sales price was $498,000, up from $483,500 the previous month.
The inventory of new houses for sale was 488,000 in October, virtually unchanged from September, as was the months' supply of 7.9 months.
Market Consensus Before Announcement
Sales seen remaining depressed at 714K in October.
* Originally scheduled for 11/26/2025
Definition
New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.
Description
This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as new home sales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio. Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once the home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, new home sales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the new home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
