New Home Sales Surge in October; South Strong

Washington, DC, Nov. 25, 2009--New home sales rose 6.2% in October on strong results in the South, the Commerce Department estimated Wednesday.

The rise in new-home sales to a seasonally adjusted annual rate of 430,000 was well above the 390,000 pace expected by economists.

Sales rose 23.2% in the South. Sales fell 20% in the Midwest, and 5.1% in both the Northeast and the West. The pace of new-home sales in September was revised slightly higher to a level of 405,000.

New-home sales are up 5.1% compared to a year ago. The supply of homes on the market fell to 239,000 in October, representing a 6.7-month supply. The median sales price in October hit $212,200, compared with $213,200 in the prior year.