New residential sales dropped another 3.5% in October, according to estimates posted by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Sales were at a seasonally-adjusted rate of 1,105,000, down from September?EUR??,,????'???s revised estimate of 1,145,000, but up 10% from last year?EUR??,,????'???s estimate of 1,005,000.

Paradoxically, housing permits authorized for new residential construction rose 5.2% in October, widening a gap between houses built and houses sold. However, October also saw the loss of several thousand homes in the Southern California wildfires, which should raise housing demands in the following months.

The seasonally-adjusted estimate of homes for sale at the end of the month rose to 367,000, up from September?EUR??,,????'???s estimate of 345,000. But the total number of homes actually sold in October dropped 8.7% from September to 84,000.

Of the 84,000 homes sold in October, 20,000 sold for $300,000 and over, the most expensive category tracked by the Federal report. This category claimed the largest number of housing sales last month, followed by the 19,000 sold in the $150,000-$199,999 category. The average sales price ducked down to $250,200 from $256,000 last month, and the median sales price lowered to $187,400 in October from $190,000.

With less homes being sold for less money, it appears as if the summer buying frenzy is slowing down. Mortgage rates that reached record lows this summer are rising, yet still remain relatively low, may be spurring home builders to get their groove on, but the number of home buyers is has decreased over the past two months.

(Percentages may not add up to 100 due to rounding)