– The US housing market is on fire with new single-family homes selling like hotcakes in October. The seasonally adjusted annual rate hit an impressive 679,000.
– The month of October must’ve had something in its cosmic essence, sparking real estate fireworks that the country hadn’t seen since March 2007.
– No, it’s not the invention of a time machine taking us back to 2007. This figure is a whopping 6.4% boost from September this year.
– The supply of homes could not keep up with the demand and slumped to a mere 6.3-month inventory. Looks like the housing market is doing its best impression of a run on the supermarket.
– Not to be left out of the party, the median sales price for a new house in October glimmered with an uptick of 9.6% from last year, reaching a staggering $416,700. “Affordable housing, who? We don’t know her” – apparently the current U.S housing market.
– But the party doesn’t stop here. Get this – a whopping 13.4% of all new houses sold in October were not even started, while 30% were still under construction. Wowzers! Speculative buyers are literally buying air and promises, no walls necessary!
– To everyone’s surprise (besides maybe the ones in the industry), despite inflation, supply chain chokepoints, and labor shortages, the housing market continues to defy gravity.

Wrap Up: The Housing Market’s Hot Streak!

Defying Odds and Gravity

Well isn’t this a pleasant surprise? Or should we say a ‘building’ surprise? The housing market seems to be wearing a full suit of armor, deflecting all kinds of challenges – inflation, labor shortage, and supply chain disruptions. Nothing seems to be slowing the demand down. It’s time to wonder if there’s some well-guarded real estate sorcery at play.

Promising Skyscrapers? More Like Promising Skyrockets!

Perhaps the most fascinating revelation was the high percentage of homes sold, that were yet to have the first brick laid. Imagine buying air believing it will turn into your dream castle. Or is it ‘castle in the air’? It feels like people are practicing trust falls with construction companies. Well, here’s to hoping that everyone lands safely in their new homes eventually.

Takeaways: Rise and Shine Market!

As per the October figures, the housing market seems to show a ‘The Little Engine That Could’ narrative, it thinks it can and oh boy, it certainly does! Sales are booming, prices are soaring, and health warnings regarding empty plots selling like hot pancakes are being conveniently ignored.

While the numbers are impressive, the trends may also raise a few eyebrows and possibly questions about affordability and sustainability. Amidst these wild times, is there a cliff we’re failing to see? Or is it a flight to a higher fortune? Only time will tell.

For now, as the famous saying goes, “Buy land, they’re not making it anymore.” It seems like we can add, “even if it’s yet to be made.” Talk about faith in market dynamics! As we sign off, remember this – in the end, anyone who’s winning at this high-stakes monopoly game gets bragging rights and the ability to host epic housewarming parties. (Just don’t forget to invite us!)

Original article: https://www.inman.com/2023/11/27/new-home-sales-fall-beneath-the-weight-of-october-mortgage-rates/