New home sales rise, prices drop

Sales of new houses in the U.S. rose 2.7 percent in September, up from their lowest point in 17 years the previous month. The median sales price decreased to $218,000, the lowest price in four years and a 9.1 percent decrease from the September 2007 price. Sales volume decreased 33 percent from September 2007. At the current sales rate, the U.S. has a 10.4-month supply of new homes. The market is considered stable when there is a five- or six-month supply.