New Home Sales Did Not Really Rise, They Fell Nearly 7 Percent

Huge Negative Revisions 

The Census Bureau's New Residential Construction Report shows huge negative revisions for September.

• Sales: New Home Sales Sales of new single‐family houses in October 2021 were at a seasonally adjusted annual rate of 745,000. This is 0.4 percent above the revised September rate of 742,000, but is 23.1 percent below the October 2020 estimate of 969,000. 
• Sales Price: The median sales price of new houses sold in October 2021 was $407,700. The average sales price was $477,800. 
• For Sale Inventory: The seasonally‐adjusted estimate of new houses for sale at the end of October was 389,000. 
• Supply: This represents a supply of 6.3 months at the current sales rate.  

New Homes Sold 

Last month the census department reported a whopping 800,000 homes sold at a seasonally-adjusted annualized rate.

This month the census department reports sales as 745,000 SAAR.

This was a reported "increase" in sales of 0.4% over the revised September numbers of 742,000 SAAR.

Actually, new home sales fell 6.9% from the September report.