New Home Sales Surge in September

Washington, DC, Oct. 24, 2012 -- New single-family home sales rose in September to their highest level in nearly 2-1/2 years, according to the Commerce Department.

The government said sales increased 5.7% to a seasonally adjusted 389,000-unit annual rate, the highest level since April 2010.

August's sales pace was revised down to a 368,000-unit pace from the previously reported 373,000 units.

Economists forecast sales rising to a 385,000-unit rate last month.

The inventory of new homes on the market rose 1.4% in September, near record lows.