New Home Supply

Sales of newly-built homes took a small step lower in October, but remain strong. According to the Commerce Department, New Home Sales slipped 1,000 units last month, falling to 368,000 units on a seasonally-adjusted, annualized basis.  The final reading fell short of Wall Street expectations, and the government revised downward its initial findings from August and September by 2,000 units and 20,000 units, respectively. A "new" home is a home that is considered new construction. Furthermore, the number of new homes for sale nationwide ticked higher to 147,000 -- the highest reading in 9 months. However, in taking a broader look…

The market for new construction homes remains strong nationwide. According to the U.S. Census Bureau, the number of new homes sold slipped 0.3 percent in August 2012 to a seasonally-adjusted, annualized 373,000 units sold — just 1,000 units less than July 2012 and the second-highest reading since April 2010. April 2010 was the last month of that year's tax credit which granted home buyers up to $8,000 off of their federal tax bill. As compared to one year ago, sales of new homes are higher by 28%. Furthermore, during the same time frame, the median sale price of a new home moved…