New reports indicate new-home sales in the U.S. are up, but economists point out that these numbers represent an average that was seen when the country was half its current size. The U.S. Census Bureau puts sales up 1.3% in October, although the glut of new homes in the market is outweighing any benefit of increased sales. Market analyst Jim Cramer argues the power of the homebuilder’s lobby is too strong and new homes keep going up despite the lack of need for them, and even if four times as many homes were sold than there were in October it would still not be enough to clear the current surplus in the U.S. housing market. For more on this continue reading the following article from TheStreet.
Sales of new homes rose 1.3% in October according to a Census Bureau report.
Single-family home sales rose to an adjusted annual rate of 307,000 from a revised 303,000 in September.
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Economists surveyed by Reuters expected sales to have increased to 315,000 annualized units from the originally reported 313,000 units in September.
The average sales price for October was $242,300, and there is an estimated 6.3 month housing supply at current sales rates.
"Overall, a slightly below expected release that shows housing remaining at very subdued levels," said a report from CRT Capital.
This article was republished with permission from TheStreet.