Replies to post #220514 on Option Millionaires

[uranium-pinto-beans]

New-home sales rose slightly in October after a sharp downward revisions to prior months' levels, a sign that demand in the sector isn't gaining momentum this fall.
Sales of newly built single-family homes in the U.S. increased 0.7% in October from the prior month to a seasonally adjusted annual rate of 458,000, the Commerce Department said Wednesday. Economists surveyed by The Wall Street Journal had expected an annual pace of 470,000 last month.
September's sales pace was revised down to 455,000 from an initial estimate of 467,000. Sales levels in August and July were also revised down.
The Commerce Department's estimates for new-home sales can be volatile from month to month. October's 0.7% advance came with a margin of error of 16.5 percentage points.
Sales in October were up 1.8% from a year earlier.
New home sales have largely disappointed this year. Some forecasters anticipated that low interest rates and consistent jobs gains would lead to increased demand for newly constructed properties. Instead, in the first ten months of the year, sales rose just 1% from the same period in 2013. So far this year, better new-home sales in the South have offset declines in all other regions of the country.
In the decade leading up to the recession, nearly 1 million new homes were sold on average annually.
Newly built homes account for roughly 10% of home purchases in the U.S. Meanwhile, sales of existing homes rose 1.5% in October to an annual rate of 5.26 million, their highest level in a year, the National Association of Realtors said last week. News Corp , owner of The Wall Street Journal , also owns Move Inc. , which operates a website and mobile products for the National Association of Realtors .
Home sales slipped after mortgage rates began to rise in mid-2013, but at least existing-home sales regained traction in recent months as mortgage rates have eased.
The average interest rate on a 30-year, fixed-rate mortgage hovered near 4% in October, according to Freddie Mac . That marked the lowest level since June 2013 . Lower rates make home purchases more affordable for borrowers.
A better labor market should also support housing. The unemployment rate is at its lowest level since 2008 and consumer confidence readings are near pre- recession levels.
While small compared to the existing-home market, new construction is important because the segment contributes more to economic growth and spurs job creation. Spending on residential building increased in third quarter, but remained down compared to a year earlier, the Commerce Department said Tuesday.
Wednesday's report showed there was a 5.6-month supply of new homes available for sale across the U.S. at October's selling pace.
The median sale price of a newly built home was $305,000 in October, the highest level on record and a large jump from $261,700 in September.
New homes tend to be more expensive than existing homes, and the gap has widened in recent years. That is one factor making new properties less attractive to buyers. The median sale price for a previously owned home last month was $ 208,300 , according to the Realtors group.
A copy of the full report is available at: http://www.census.gov/construction/nrs.
Write to Eric Morath at [e-mail] and Ben Leubsdorf at [e-mail]

(END) Dow Jones Newswires
11-26-14 1000ET
Copyright (c) 2014 Dow Jones & Company, Inc.