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Elevated mortgage rates that averaged 7.62 % in October per Freddie Mac , the highest rate since 2000 , depressed buyer demand and pushed down new home sales in October . Sales of newly built , single-family homes in October fell 5.6 % to a 679,000 seasonally adjusted annual rate , following a notable downward revision in September , according to newly released data by the U . S . Department of Housing and Urban Development and the U . S . Census Bureau . The pace of new home sales in October was up 17.7 % from a year ago . “ New home sales fell back in October as interest rates moved higher ,” said Alicia Huey , chairman of the National Association of Home Builders ( NAHB ) and a custom home builder and developer from

VOL 2023 ISSUE 11

New Home Sales Weaken in October

Birmingham , Ala . “ Despite the previous month , to 439,000 . This challenging conditions , sales are up represents a 7.8 months ’ supply at 4.6 % on a year-to-date basis due to a the current building pace . A measure lack of inventory in the resale near a 6 months ’ supply is considered market .” balanced . Of total inventory , including “ Median new home prices have new and existing homes , newly-built moved lower as new home size has homes made up 30 % of all singlefamily homes available for sale in decreased in 2023 ,” said NAHB Chief Economist Robert Dietz . “ Combined October – compared to a 12 % with sales incentives and a lack of historical average . resale inventory , demand has

The median new home sale price remained solid in 2023 and should in October was $ 409,300 , down 3.1 % improve in 2024 as interest rates from September , and down 17.6 % move lower .” compared to a year ago . Pricing is

A new home sale occurs when a down both due to builder incentive sales contract is signed or a deposit use and a shift towards building is accepted . The home can be in any slightly smaller homes . As a result , stage of construction : not yet started , 33 % of sales were priced between under construction or completed . In $ 300,000 to less than $ 400,000 , addition to adjusting for seasonal compared to a year ago when just effects , the October reading of 20 % of sales were in that range . 679,000 units is the number of homes Regionally , on a year-to-date that would sell if this pace continued basis , new home sales are up 9.5 % for the next 12 months . in the Northeast , 5.8 % in the South

New single-family home inventory and 2.5 % in the West , while sales are in October increased to the highest down 0.3 % in the Midwest . level since January , up 8.3 % from the

■ EXECUTIVE OFFICERS President Delton Deal , Deal 2 Deal Custom Homes Vice President Jaime Gonzalez , Blue Sage Homes Secretary Victor Robles , Maravilla Homes Associates Vice President Angelique Roman , True Title El Paso Executive Vice President Ray Adauto , EPAB Immediate Past President Gus Loy , Loyalty Homes

■ BOARD OF DIRECTORS Lydia Mlouhi , Crown Heritage Homes Leti Navarrete , EPT Bella Custom Dream Homes Kathy Parry , Hunt Companies Samira Gonzalez , ICON Custom Home Builders Victor Rejino , Maravilla Homes Charlie B . Garcia , Rise Homes Jacob Barde , Tropicana Homes Sandra Lucero , Builders Source Bea Lich , Bea Unique Charles Haskins , Haskins Electric John Chaney , Hercules Industries Luis Rosas , HUB International Jorge Herrera , J & H Post Concrete & Tension Randall Smith , Randall Smith CPA Financial Services

Ted Escobedo , Snappy Publishing Patricia Alvidrez , Stewart Title Kathy Carrillo , Western Heritage Bank Henry Tinajero , WestStar Bank Courtney Yeatman , WestStar Bank

© 2023 Builders Outlook is published by the El Paso Association of Builders and Snappy Publishing , LLC

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