"Some slowdown was expected in October,” Seiders said, “but we’re projecting 1.08 million home sales for the year as a whole, up by nearly 11% from 2002.”
With consumer sentiment and confidence both increasing this fall and the job market finally appearing to show systematic improvement, Seiders noted that the environment for housing would remain “very good” for the balance of this year.
Sales in October were down 0.5% in the Midwest, 1.0% in the South, 3.3% in the Northeast and 9.4% in the West, where activity nevertheless was 1.4% ahead of a year earlier.
The inventory of new homes for sale in October increased slightly to 360,000 units, representing a thin four-months supply at the current sales pace and exceptionally low by historical standards.
"Inventory has increased slightly, but there is a negligible increase in the actual number of units that have been completed and are for sale," Seiders said. "Most of the inventory increase represents units permitted but not yet started, as well as units still under construction."
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