Sales of new single-family homes were up 25.4% in October to a seasonally adjusted annual rate of 444,000 units according to U.S. Census Bureau data.
October and September new home sales were both delayed by the government shutdown. September's new-home sales data was released at the same time as October's. September new-home sales were down 6.6%.
"The October sales numbers show that there is clearly a demand for new housing and the recovery remains on track," said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a homebuilder from Charlotte, NC. "However, the recovery continues to be slowed by political uncertainty in Washington and ongoing constraints builders face with regard to tight credit conditions for consumers and the availability of labor, lots and materials."
"The strong October results return us to the sales levels we saw earlier this year and negate the pause caused by the sudden jump in interest rates," said NAHB Chief Economist David Crowe. "We expect sales to continue to rise as pent up demand is released and first-time home buyers creep back into the market."
All four regions posted double-digit sales gains in October. Sales were up:
* 19.2% in the Northeastern United States
* 34% in the Midwest
* 28.2% in the South
* 15.2% in the West
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