Posted on Wednesday, December 1, 2010
October wasn’t a good month for home builders.
The U.S. Department of Commerce reports that new home sales fell 8.1 percent last month, to a seasonally adjusted annual rate of 283,000 units.
In addition, the median home price fell to$194,900, the lowest level in seven years.
At this sales pace, there was an 8.6-month supply of new homes on the market at the end of October, up from a 7.9-month supply at the end of September.
The West led the decline, with a 23.9 percent drop in new home sales, followed by the Midwest, with a 20.4 percent drop, and the North, with a 12.1 percent drop. The South, however, registered a 3.1 percent gain.
On Tuesday, Florida Realtors reported existing home sales in the tri-county area followed the rest of the nation, falling year-over-year in October.
The disappointing news has not hurt Miami-based homebuilder Lennar Corp. It’s stock was up 52 cents to $15.38 in late morning trading.
The company (NYSE: LEN; NYSE: LEN.B) has been buying up distressed assets across 17 states at a significant discount.South Florida Business Journal