New home sales declined slightly in October from September, but remain at the high end of this expansion. The renewed uptrend in housing sales, due to lower mortgage rates, is clearly intact:
(Click on image to enlarge)
Meanwhile, house prices, as measured by the Case Shiller index, also increased at a slightly faster YoY rate, 3.2% for September vs. 3.1% in August (blue):
(Click on image to enlarge)
As I have said many times, sales (permits, red in the graph above) lead prices. Now that the sales rebound is firmly intact, price appreciation has stabilized and is likely to begin accelerating again.
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