New Home Sales Rise Sharply 6.2% in October, Surprise Many Market Analysts' Forecasts

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(WASHINGTON, D.C.) -- According to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development, sales of new one-family houses in October 2009 were at a seasonally adjusted annual rate of 430,000, This is 6.2 percent (±17.6%) above the revised September rate of 405,000 and is 5.1 percent (±14.9%) above the October 2008 estimate of 409,000.

The median sales price of new houses sold in October 2009 was $212,200; the average sales price was $261,100. The seasonally adjusted estimate of new houses for sale at the end of October was 239,000. This represents a supply of 6.7 months at the current sales rate.

This is an unexpected jump in new home sales numbers for many Wall Street analysts. Home sales in the mid-tier price range of $250,000 to $500,000 also showed signs of increased sales activities.

As the market chews through the lower-end of the market of new home inventory (now at a 37 year low supply of new homes), a small percentage of buyers are starting to move up into the mid-tier prices ranges for new home sales purchases.

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