New home inventory dwindles

Supply of new homes down 40% from one year ago

Sales of newly-constructed single-family homes rose 6.2 percent from September to October, to a seasonally adjusted annual rate of 430,000, the Census Bureau said today.

At that pace of sales — a 5.1 percent increase from a year ago — the 239,000 new homes on the market represented 6.7 months of supply, down from 7.4 months in September and 11.1 months a year ago. Analysts generally consider a 6-month supply of homes an even balance between supply and demand.