October new homes sales fell .7% on a monthly basis to 733,000 annual rate. However, for September the number was increased from 701,000 to 738,000. September was much stronger and was a 12-year high. Therefore, a fall for October of .7% is not significant.
New home sales are up 32% from a year ago with about 700,000 new units for three months in a row. There is a 5.3 month supply and to put that in context, supply peaked about seven months ago.
Even though the number was down for October, the housing market remains strong. The number is likely to be revised as month-to-month numbers are usually volatile.