New Home Sales Rise In October Despite Labor Shortage Struggles

New single‐family home sales in October rose 0.4% from the previous month to a seasonally adjusted annual rate of 745,000.

The estimate is 23.1% below the October 2020 figure of 969,000. September's sales estimate was amended to 742,000 units from the 800,000 reported previously.

The average sales price of new homes was $477,800. The median sales price of new homes increased 17.5% over the year to $407,700.

Due to labor shortages nationwide, homebuilders have been restricted by a lack of workers and back-ordered construction materials. This is problematic as construction timelines are extended and prices for new homes are increasing.

Chief economist for Realtor.com Danielle Hale said “new construction can seem like alternative attraction” for those looking to move into new homes, but warns that “many for-sale new homes are either under construction or not yet started.”