U.S. new home sales drop 17.3% in October
Real Estate

U.S. new home sales drop 17.3% in October

Sales of new single-family homes in the U.S. fell sharply in October 2024, reaching their lowest level in nearly two years as rising mortgage rates and hurricane disruptions curbed buyer activity. According to the Commerce Department, new home sales plunged 17.3% to a seasonally adjusted annual rate of 610,000 units, marking the lowest rate since December 2022. The sales pace for September remained unchanged at 738,000 units. Economists had anticipated a smaller decline, predicting a rate of 725,000 units. New home sales, which account for roughly 15% of U.S. home sales, also fell 9.4% year-over-year in October. Mortgage rates played a significant role in the decline. After the Federal Reserve began cutting interest rates, the average 30-year fixed-rate mortgage dropped to 6.08% at the end of September. However, by the end of October, rates surged to 6.72%, driven by rising 10-year Treasury yields amid robust economic data and concerns over inflation. The 30-year fixed-rate mortgage averaged 6.84% last week. Regionally, new home sales plummeted 27.7% in the South, likely due to hurricane-related disruptions, and fell 9.0% in the West. In contrast, sales rose 1.4% in the Midwest and surged 53.3% in the Northeast. The median price of new homes increased 4.7% year-over-year to $437,300 in October. Inventory levels also rose, reaching 481,000 units, the highest since early 2008. At October’s sales pace, it would take 9.5 months to clear the current supply of homes, compared to 7.7 months in September. Expectations of slower rate cuts next year have intensified following inflation concerns. Additionally, President-elect Donald Trump's announcement of tariffs on imports from Mexico, Canada, and China has fuelled uncertainty in the housing market. (ET)

Sales of new single-family homes in the U.S. fell sharply in October 2024, reaching their lowest level in nearly two years as rising mortgage rates and hurricane disruptions curbed buyer activity. According to the Commerce Department, new home sales plunged 17.3% to a seasonally adjusted annual rate of 610,000 units, marking the lowest rate since December 2022. The sales pace for September remained unchanged at 738,000 units. Economists had anticipated a smaller decline, predicting a rate of 725,000 units. New home sales, which account for roughly 15% of U.S. home sales, also fell 9.4% year-over-year in October. Mortgage rates played a significant role in the decline. After the Federal Reserve began cutting interest rates, the average 30-year fixed-rate mortgage dropped to 6.08% at the end of September. However, by the end of October, rates surged to 6.72%, driven by rising 10-year Treasury yields amid robust economic data and concerns over inflation. The 30-year fixed-rate mortgage averaged 6.84% last week. Regionally, new home sales plummeted 27.7% in the South, likely due to hurricane-related disruptions, and fell 9.0% in the West. In contrast, sales rose 1.4% in the Midwest and surged 53.3% in the Northeast. The median price of new homes increased 4.7% year-over-year to $437,300 in October. Inventory levels also rose, reaching 481,000 units, the highest since early 2008. At October’s sales pace, it would take 9.5 months to clear the current supply of homes, compared to 7.7 months in September. Expectations of slower rate cuts next year have intensified following inflation concerns. Additionally, President-elect Donald Trump's announcement of tariffs on imports from Mexico, Canada, and China has fuelled uncertainty in the housing market. (ET)

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement