New home sales were reported down 8% in October to a seasonally-adjusted annual rate (SAAR) of 283,000 as consumers maintain their concern about the economy and jobs. On a quarterly basis, sales were down 2% from the third quarter average with similar declines across all regions except the South. The inventory of unsold homes continues to fall to a new low not seen since June 1968.
Sales were heavier at prices below $200,000 indicating continued success at selling to first time home buyers as well as regional shifts away from high cost markets and toward lower cost markets in the South.
The revised August sales rate of 275,000 establishes a new all time record low rate breaking the old record low of 282,000 in May 2010. The lowest SAARs are now August 2010, followed by May 2010, and July and October 2010 tied at third lowest rate.