Primo Porcuna's Blog

New home sales rose 6.2% to a seasonally adjusted annual rate of 430,000 from an upwardly revised 405,000 in September, much higher than the 2% economists had expected. The surge in sales was driven by a 23% increase in the South. Sales fell about 5% in the West and Northeast, and 20% in the Midwest. Despite the lack of certainty about the tax credit that buyers faced in October, sales were up 5.1% from a year ago, the first yearly increase since November 2005. The median sales price of $212,200 was almost even with $213,200 a year earlier, but up almost 1% from September’s level of $210,700. This is likely something of a blip, since home shoppers in October were acting before lawmakers decided to extend a tax credit for first-time buyers and expand it to some existing homeowners. The credit now covers contracts signed by April 30.