As the real estate market enters its seasonal lull, new home sales fell off slightly in October, according to the U.S. Department of Housing and Urban Development.
The HUD report said that sales of new, single-family homes were at a seasonally adjusted rate of 368,000, a 0.3 percent decline from September. However, this was 17.2 percent higher than October 2011's level.
Additionally, the median sales price of a new home in October was $237,000, while the average was $278,900. The estimated inventory of new homes available was 147,000, which represents a 4.8 months supply at the current sales rate.
"The new-home sales data are volatile and revision-prone and we are not changing our view that a modest recovery in home sales, construction activity, and prices is well underway," economists John Ryding and Conrad DeQuadros of RDQ Economics said in a research note, according to Bloomberg.
Chief economist at Raymond James & Associates Scott Brown told Bloomberg that better job growth is essential to regaining positive momentum for new home sales.