New Home Sales Rise More Than Expected in October

Data released Wednesday, November 25, 2009 shows that sales of newly built single-family homes rose in October more than expected; it’s the highest level of new home sales in a year.   

The Commerce Department announced that sales jumped 6.2% to a 430,000 annual pace, the highest since September 2008.

Analysts were expecting a rise to a 410,000 annual pace.   The increase has pushed the supply of new homes on the market last month down to 239,000 units, the lowest since May 1971.  This represents a 6.7 months’ supply at the current sales rate.