Based on data from HUD and the U.S. Census Bureau, the National Association of Home Builders NAHB) reports new single-family home construction rose 5.7 percent in Sept. to a seasonally-adjusted annual rate (SAAR) of 389,000 units. This marks the best sales rate in 2 1/2 years. NAHB Chief Economist David Crowe says, “Meanwhile, despite a small increase in the inventory of new homes on the market in September, the number of completed new homes for sale is now at an all-time low and the month’s supply is at its tightest since October 2005. This is an indication that builders continue to have a tough time obtaining construction credit, even as demand for new homes increases.” Regionally, new home sales rose 16.7 percent in the Northeast, 16.8 percent in the South, and 3.9 percent out West. However, as MHProNews has learned, the Midwest registered a 37.3 percent drop. New home inventory edged up to 145,000 units in Sept., a 4.5 month supply at the current rate of sales.
