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Sales of new single‐family houses in October were at a seasonally adjusted annual rate of 632,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 7.5% above the revised September rate of 588,000 but 5.8% below the October 2021 estimate of 671,000.

“I'd be careful putting too much weight on the uptick captured in today's report,” says Zonda chief economist Ali Wolf, noting that the Zonda data collected on a quantitative and qualitative basis for October appears to be weaker than what the Census data presents. “With that being said, we are finding that some consumers are responding favorably to both the increased use of incentives and the strategic lowering of new-home prices. Builders are working quickly to ‘find the market.’”

The median sales price of new homes sold in October was $493,000, while the average sales price was $544,000.

The seasonally adjusted estimate of new houses for sale was 470,000 at the end of October, representing an 8.9-month supply at the current sales rate.

“Mortgage rates are stabilizing after dropping in response to a benign inflation report. In the bigger picture, this year's steep rise in mortgage rates has had a notable impact on middle-class home buyers,” says Holden Lewis, home and mortgage expert at NerdWallet. “Existing home sales were down 28% in the 12 months ending in October, and new-home sales are skewing toward higher-income buyers. In October, 48% of new homes sold for $500,000 or more; a year earlier, the figure was 33%.”