In October 2023, the U.S. housing market displayed mixed signals, with new single-family home sales experiencing a downturn, even as building permits showed signs of resilience.
Sales of new single-family homes take a dip: Sales of new single-family houses reached a seasonally adjusted annual rate of 679,000 in October, a 5.6% decrease from September's revised rate of 719,000. Despite this monthly downturn, the figures showed a significant 17.7% year-over-year increase from the October 2022 estimate of 577,000.
The median sales price for new houses sold in October stood at $409,300, with the average sales price hitting $487,000. The inventory of new houses available for sale was estimated at 439,000, on a seasonally adjusted basis.
Regionally, sales trends were uneven: the West and Midwest saw declines of 23.3% and 16.4%, respectively, while the Northeast and South witnessed increases of 13.2% and 2.1%. These variations highlight the differing economic landscapes across the U.S.
Building permits tick up: Contrasting the drop in home sales, building permits in October rose by 1.8% to a seasonally adjusted annual rate of 1.498 million, slightly above the preliminary estimate of 1.487 million. However, this figure remains below the 10-month peak of 1.541 million seen in August 2023.
The construction market continues to grapple with high interest rates and escalating construction costs. Notably, the volatile multi-segment saw a 4.1% increase in permits to 529,000, rebounding from September's low. Additionally, single-family authorizations rose modestly by 0.6% to 969,000.
Market reaction: In response to these mixed housing data, real estate stocks showed varied performance. The Real Estate Select Sector SPDR Fund
Notable gainers in the sector included Crown Castle Inc.
