US new home sales rise in October; median home prices soar 17.5% to $407,000

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US new home sales rise in October; median home prices soar 17.5% to $407,000

On Wednesday, US Commerce Department data had unveiled that sales of US single-family homes, the most lucrative item in US homebuilding industry, picked up last month despite a painstaking persistence in price-pressure build with median home prices surging as much as 17.5 per cent on a year-on-year basis, suggesting a relentless appetite among prospective homebuyers despite a rapid rise in inflation indicators.

Apart from that, latest Commerce Department data revealing a sharp shoot-up in US median home prices, came against the backdrop of a chronic shortage of existing homes, as US homebuilding market had advanced at a whirlwind pace over last Summer with Americans reportedly jumped on the bandwagon of a mass-scale shift towards the suburbs and countryside from highly clogged US cities.

Nonetheless, an acceleration in vaccination campaign across the United States had enabled the world’s largest economy to reopen earlier this year while adding to setbacks on a US homebuilding market which had anchored the economy alongside mega-cap tech conglomerate over most parts of a pandemic-rampaged 2020.

US new home sales rise in October

According to US Commerce Department data, new home sales soared 0.4 per cent to a seasonally adjusted 745,000 units in October, while September US new home sales were revised down to 742,000 units from an initial estimate of 800,000 units.

Nonetheless, on an annualized basis, US new home sales accountable for roughly a tenth of entire US homebuilding market, plunged 23.1 per cent compared to the same time a year earlier, while a median value of US new home prices jumped 17.5 per cent to $407,700 in October on a year-on-year basis.