New Homes Sales Slump Broken

October 28, 2016

The new home sales slump has been broken.

The New York Times reports that new home sales increased 3.1 percent last month to a seasonally adjusted annual rate of 593,000 units. The jump comes after three straight months of figures that were revised down by a total of 85,000 units from past estimates. New home sales are volatile and subject to revisions.

Economists had forecast single-family home sales, which account for about 9.8 percent of overall home sales, falling to a rate of 600,000 units last month. “The housing market may not be booming but it is clearly moving forward at a steady pace,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pa. “But the big problem is still the lack of inventory.”

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