Sales of New Homes Rise
For the month of October, new-home sales rose a little in October. Sales of new homes increased by 1.3% to seasonally adjusted annual rate of 307,000. In September, the rate of new home sales was 303,000, according to the Commerce Department on Monday. This is below the level forecast by economists surveyed by the Dow Jones Newswires.
$212,000 was the median price for a new home in October. This is the lowest level since October 2010 when the median price was $204,200. Apparently, would-be home-buyers are still waiting on the sidelines in the real estate market as prices drift slightly lower.
With the glut of foreclosed homes and homes yet to be foreclosed upon, home-buyers appear to be seeking that supply of housing to fill their needs. New homes tend to be more expensive than previously built homes.
New-home sales are about twenty-five percent of what sales were at the peak of the housing bubble. For the housing sector to recover, jobs need to be created. As employers wait for Congress to determine the new spending levels will be in the near future, the creation of jobs is not on the horizon.
Economists expect that the unemployment rate will be somewhat constant at nine-percent in November.