October home sales and inventories fall
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WASHINGTON (Reuters) - Sales of newly built single-family homes dropped sharply in October and were running at levels last seen 17-1/2 years ago, according to a Commerce Department report on Wednesday that offered a fresh measure of the U.S. housing sector's distress..
The annual sales pace of 433,000 was down 5.3 percent from a revised 457,000 in September and was the weakest since 401,000 in January 1991. Wall Street economists had forecast that October sales would be at 450,000-unit pace.
The median sales price fell to $218,000 from $221,700 in September and was the lowest since September 2004 when it was at $211,600. The median marks the half-way, with half of homes selling above and half selling at prices below the median.
Inventories of new homes for sale dropped by a record 8 percent to 381,000 in October, bringing the number of homes for sale to its lowest since February 2004.
Still, at the current weak sales pace, it would take 11.1 months to clear the overstock of completed but unsold new homes, up from 10.9 months at September's sales pace.
(Reporting by Glenn Somerville; Editing by Theodore d'Afflisio)
