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ew home sales plummeted to a two-year low in October, with an annualized rate of 610,000 units sold. This represents a 17% decline from last year's numbers and is significantly worse than expected. The South was particularly hard hit, with sales falling by 28% year-over-year to an annualized pace of 339,000 - the slowest in the region since the pandemic began.

    However, hurricanes Helene and Milton, which devastated the Southeast, likely played a significant role in this decline. Affordability remains a major issue nationwide, with the median sale price of a new home reaching $437,300, a 14-month high. Rising mortgage rates, fueled by economic data and expectations surrounding President-elect Donald Trump's policies, have also contributed to the slowdown.

    On a more positive note, inventory levels are increasing, with a 2.1% year-over-year rise in available homes. This represents a significant boost, with 9.5 months' worth of inventory at current sales pace. The long-term outlook for home production is uncertain due to concerns over labor shortages resulting from potential mass deportations under Trump's administration.