Single family home sales for the month of October rose 0.4 percent above September totals for a seasonally adjusted annual rate (SAAR) of 745,000, but fell 23.1% below the October 2020 rate of 969,000, according to the CalculatedRisk Newsletter.
New estimates reveal that home sales are declining year-over-year after a surge in market activity at the start of the pandemic. Year-to-date sales in 2021 are 4.4% below 2020 rates, meaning that sales in 2021 will likely finish far below sales from the previous year.
New home sales are now declining year-over-year since sales soared following the first few months of the pandemic.
The months of supply increased in October to 6.3 months from 6.1 months in September.
The all-time record high was 12.1 months of supply in January 2009. The all-time record low was 3.5 months, most recently in October 2020.
This is slightly above the normal range (about 4 to 6 months of supply is normal).
The inventory of completed homes for sale - at 38 thousand - is just above the record low of 33 thousand. This is about half the normal level of completed homes for sale. However, the combined total of completed and under construction is close to normal.
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