Nationally, Inventories of new homes for sale continue to plunge.  At 239,000, the stock of unsold new homes is the lowest number in nearly forty years.  At the current sales pace, the stock would be exhausted in 6.7 months.

The improved inventory situation is helping to stabilize new home prices, which have been roughly flat over the past few months.

New home sales in October printed stronger than most analysts had expected.  Indeed, sales rose from an annualized rate of 405,000 in September to 430,000 in October, the highest sales pace since the Lehman bankruptcy last September.

Read my October 28th blog.  Drawing down the inventory is key to stabilizing pricing.  As of this morning, there were 530 active residential listings posted in the GAAAR MLS compared with 617 for a high on September 17th.  It has been steadily dropping, we will see what spring brings.

Source:  Greater Alexandria Area Association of Realtors, US Dept of Commerce and Wells Fargo Securities, LLC.