New Home Sales Up 4.8% in September

Washington, DC, October 25, 2007--Sales of new homes rose 4.8% in September to a seasonally adjusted annual rate of 770,000 from a revised 735,000 in August, according to the Commerce Department.

August's sales had been originally been reported at a 795,000 pace.

Economists had anticipated September's sales to come in at a 758,000 pace.

On a year-over-year basis, new homes sales in September are off 23.3%.

The inventories of new homes during the month fell 1.5% to 523,000, representing an 8.3-month supply, down from 9 months in August. The inventory of completed homes continued to rise, however.

Sales rose in two of four regions in September, with sales in the West rising 38% after a 23% drop in August. Sales fell 19.5% in the Midwest to the slowest pace in 16 years. Sales dropped 6.6% in the Northeast and were essentially flat in the South, rising 0.5%.

The median sales price of $238,000 was up 5% compared with a year earlier.