ust in time for the holidays, more newly constructed homes have come onto the market. (House hunters, you know what to ask Santa for this year.) But permits to build more plunged in October, which could reduce the number of new homes for sale in the months ahead.
Just 97,900 permits to build new homes of all types were issued in October—a nearly 9.1% drop from September, according to the U.S. Census Bureau’s new residential construction report. However, a slowdown is common in late fall, as Joe Kirchner, senior economist at realtor.com®, pointed out. We looked only at the numbers that were not adjusted for seasonal fluctuations.
“We’re moving into the cooler months and builders are typically not going to start something just before winter,” Kirchner says. “I wouldn’t worry.”
Construction was also up on those multi-family dwellings, rising nearly 57.6% from September and almost 31.1% from October of 2015.
In addition, about 97,100 homes were completed in October. That’s up nearly 6.5% from September and almost 8.5% from the previous year.
“This means there will be more homes for sale, giving buyers more options,” says Kirchner.