Nation has 8.6-month glut of new homes on market, Census Bureau says
New home sales dropped to an annualized rate of 283,000 in October, leaving 202,000 new homes (8.6 months worth) on the market, according to a report released Wednesday by the Census Bureau and the Department of Housing and Urban Development. New home sales are down 8.1% from September and 28.5% from October 2009. The National Association of Realtors reported Tuesday that existing home sales trended down in October also, dipping 2.2% compared to September. Collectively in 2010, the annualized rate of new home sales is 273,000. This is down 14% from 2009. The West region saw the steepest decline in new homes sales compared to the year- ago period, down 46.9%, followed by the Midwest (down 27.8%), the South (down 23%) and the Northeast (down 12.1%). The median sales price for a new home in October was $194,900, down 14% from $226,300 in September and down 9% from $215,100 one year ago. In October, the average sales price also decreased, down to $248,200 from $269,700 in September and $263,800 in October 2009. Write to Christine Ricciardi.