New Home Sales Rebound From September Low

New residential sales in October soared 25.4 percent above the revised September rate of 354,000 to a seasonally adjusted annual rate of 444,000. In comparison, the October 2012 annual estimate was 365,000, a 21.6 percent increase year-over-year. The surge beat economist expectations ranging from 425,000 to 429,000 sales for the period.

The median sales price for new homes in October was $245,800 and the average sale price was $321,700. It was the fourth month in a row that the median price fell and a possible indication that builders are dropping prices. On a seasonally adjusted basis it is estimated that 183,000 new homes were for sale at the end of October—a 4.9 month supply at the current sales rate.