WASHINGTON — Sales of new U.S. single-family homes rose for a third straight month in October, but a downward revision to the prior month's sales pace indicated the housing market recovery would remain gradual.þþThe Commerce Department said on Wednesday that sales gained 0.7 percent to a seasonally adjusted annual rate of 458,000 units. September's sales pace was revised down to 455,000 units from 467,000 units.þþEconomists polled by Reuters had forecast new home sales rising to a 472,000-unit pace last month.þþNew home sales, which account for about 8 percent of the housing market, tend to be volatile month to month. Compared to October last year, sales were up 1.8 percent.þþHousing remains constrained by slow wage growth, which is resulting in a slow pace of household formation.þþLast month, new home sales rose 7.1 percent in the Northeast and surged 15.8 percent in the Midwest. In the populous South,þþsales fell 1.9 percent and were down 2.7 percent in the West.þþWith sales rising modestly, the stock of new houses available on the market rose 1.0 percent last month to the highest level since June 2010.þþAt October's sales pace it would take 5.6 months to clear the supply of houses on the market, up from 5.5 months inþþSeptember. Six months' supply is normally considered a healthyþþbalance between supply and demand.þþThe median new home price jumped 15.4 percent from a year ago to a record $305,000 (193,229.26 pounds).þþ
Source: NY Times
