Economists Look for Answers Amid Record New-Home Sales

The latest joint report by the U.S. Census Bureau and Department of Housing and Urban Development showed September's new-home sales rose at the fastest pace in 10 years. Sales went up 18.9 percent from August, and 17 percent from September 2016.

The report showed the median sales price of new homes sold increased in September to $319,700 from $300,200 in August; September's average sales price was $385,200, per HousingWire. Housing inventory went down by 5,000 new homes for sale in September to 279,000. According to Redfin Chief Economist Nela Richardson, “this combined with a larger stock of new construction inventory makes new home construction a key driver in today's market.”

“Now this is the kind of new home sales activity we need and expect to be seeing, especially after what was a pretty weak and disappointing summer selling season made worse by a string of Hurricane disruptions,” Zillow Chief Economist Svenja Gudell said. “And upward revisions to initially reported summer numbers, however modest, only sweeten the news.”

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