New U.S. Home Sales Rise 6.2 Percent

New U.S. Home Sales Rise 6.2 Percent

Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.

November 25, 2009

WASHINGTON — Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.

The Commerce Department says sales rose 6.2 percent to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September. Economists surveyed by Thomson Reuters had expected a pace of 410,000.

Home shoppers in October were acting before lawmakers decided to extend a tax credit for first-time buyers and expand it to existing homeowners. Nevertheless, sales were up 5.1 percent from a year ago, the first yearly increase since November 2005.

The median sales price of $212,200 was off 0.5 percent from $213,200 a year earlier, but up 0.7 percent from September's level of $210,700.

Click here to read the entire story.

Source: Associated Press