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October New Home Sales Up 45.8 Percent Year-Over-Year

Zonda released the New Home Pending Sales Index for October 2020, which shows pending sales increased month-over-month and year-over-year across the U.S. The index is based on the number of new home sales contracts signed across the country.

The New Home PSI came in at 168.9 for October, representing a 45.8 percent increase from October 2019. On a month-over-month basis, new home sales rose by 0.8 percent from September. 

"Housing demand is not letting up," says Ali Wolf, chief economist at Zonda. "The best thing about the strength in today's housing market is that it is largely fueled by real families looking to take advantage of low mortgage rates to fulfill their American Dream."

Pending new home sales trended above October 2019 levels in every top market across the country. 

"As COVID-19 hospitalizations rise and parts of the country start shutting down again, housing plays an even greater role in our life," says Wolf. "Looking into 2021, however, some builders are expressing caution over the sustainability of the current growth rates due to limited inventory and some affordability concerns."