MNI DATA ANALYSIS: US October Home Sales Fall 8.9% To 544k SAAR>

--Headline Decrease Led By 22.1% Fall in Midwest Region

--October Homes Supply Up 4.3%; Months Supply Rises To 7.4 Months

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - New single-family home sales fell by 8.9% to a 

544,000 annual rate in October, led by a decrease in sales in the 

Midwest and Northeast regions, data released by the Commerce Department 

Wednesday showed. 

     The new home sales pace was well below the 576,000 rate expected, 

based on an MNI survey of economists, and followed upward revisions to 

the previous two months. As a result, market participants are likely to 

see the data as a negative factor. 

     The sales pace was below its year ago level, down 14.3% unadjusted 

from October 2017. 

     New homes sales in September were revised up to a 597,000 pace from 

the 553,000 previously announced rate. The August pace was revised up to 

591,000 from 585,000. 

     Given the sales pace for October, the fourth quarter sales pace 

averaged 544,000, down from 598,000 in the third quarter. 

     When broken down regionally, the decrease in October headline sales 

was due to declines in all regions. There were decreases in the 

Northeast (18.5%), the Midwest (22.1%), the South (7.7%), and the West 

(3.2%). 

--HOME SUPPLY WELL ABOVE YEAR-AGO

     The supply of new homes for sale rose by 4.3% in the month to a 

level of 336,000. The current level of supply is 17.5% higher than a 

year earlier, suggesting that supply is adequate to meet demand. This is 

the highest level of new homes for sale since January 2009, when it was 

341,000. 

     Based on the movements in sales and supply in October, the months' 

supply rose to 7.4 months from the September months' supply of 6.5 

months. The October months' supply was also up from the October 2017 

level of 5.6 months. This is the highest months' supply of new homes 

since February 2011, when it was 8.1. 

     Supply of new homes remains fairly high relative to sales, as 

opposed to the very tight supply of existing homes available for sale. 

--MEDIAN SALES PRICE FALLS IN OCTOBER

     The median sales price fell by 3.6% to $309,700 from $321,300 in 

September. The median price stands 3.1% below the $319,500 level in 

September 2017, suggesting increasing supply could be pushing new home 

prices down. 

     ** MNI Washington Bureau (202) 371-2121 ** 

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