In news that should please those who use construction equipment for home building, a government report shows that sales for new homes increased in October.
According to a joint release from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new homes were up by 6.2 percent for the month when compared to September and came in at an annually-adjusted rate of 430,000. When compared to October of last year, sales of new, single-family houses are up 5.1 percent.
When compared to their low-point in January, sales of new homes are up 30.7 percent, while the amount of unsold homes compared to sales has dropped 46 percent since the first month of this year. At the current rate of sale, the housing supply sits at almost seven months.
"The rise in new home sales is encouraging," Commerce Undersecretary Rebecca Blank said. "Sales have risen substantially above their low in January, and the inventory of unsold homes has fallen sharply."
What remains to be seen is what lasting effect an extension of the first-time homebuyer's credit will have on the market. The credit has been attributed to an increase in the sale of homes.