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Builder Confidence Rises to 43 Builder Confidence rose two points to 43 in October after rising to 41 in September, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). All three HMI indices were up in October. Current sales conditions rose two points to 47, sales expectations in the next six months increased four points to 57 and traffic of prospective buyers posted a two-point gain to 29. Regional three-month moving averages were mixed. Any number over 50 indicates that more builders have a positive outlook than a negative one. Building Permits Fall 2.9% Overall building permits fell 2.9% to 1.43 million annualized units in September after rising to 1.48 million annualized units in August. Single-family permits increased 0.3% to 970,000 units from an upwardly revised reading in August. Multifamily permits dropped 8.9% to an annualized 458,000 units after rising to 508,000 units in August. It was the weakest reading for multifamily units since May. Regional permit issuance was mixed. Housing Starts Fall 0.5% Housing starts fell 0.5% in September to a seasonally adjusted annual rate of 1.35 million units after jumping to 1.36 million units in August. Single-family starts increased 2.7% to 1.03 million units after rising to 992,000 units in August. There were 642,000 single-family homes under active construction in September, down 4.5% from September 2023. The number of multifamily units under construction declined 3.4% in September to 842,000 units, 16.5% lower than a year ago and the smallest count since February 2022. Regional housing starts were mixed. New Home Sales Rise 4.1% New home sales rose 4.1% in September to a seasonally adjusted annual rate of 738,000 new homes after falling to a downwardly revised number in August, according to the National Association of Home Builders. New home sales are up 6.3% year over year. New single-family home inventory in September remained high at 470,000, up 8.0% compared to a year earlier, a 7.6 months’ supply at the current building pace. A 6 months’ supply is considered normal. The inventory of completed for-sale new homes rose to 108,000, the highest level since 2009. The median new home sale price in September was $426,300, essentially unchanged from a year ago. A deeper look at Census data shows a gain in sales for new homes priced below $300,000, which made up 17% of new home sales in September, up from 14% a year ago. Sales of new homes are tabulated when contracts are signed and are considered a more timely barometer of the housing market than purchases of previously-owned homes, which are calculated when a contract closes. Existing Home Sales Fall 1.0% Existing-home sales fell 1.0% in September to a seasonally adjusted annual rate of 3.84 million new homes after falling to 3.86 million in August. Sales were down 3.5% from September 2023. The median existing-home sales price rose year over year for the fifteenth consecutive month, rising to $404,500. Inventory rose 1.5% to 1.39 million homes at the end of September after rising to 1.35 million at the end of August. Inventory was at a 4.3 months’ supply at the current monthly sales pace. Regional existing home sales were mixed. NAR says that home sales have been stuck around the 4 million mark for the past twelve months, despite more available inventory, lower mortgage rates and continuing job growth. NAR Chief Economist Lawrence Yun speculated that some consumers may be putting off such a major purchase until after the upcoming election. Regional Housing Data  Mortgage Rates Rise to 6.7% 
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