Rise in October new home sales brings more good news for builders

In another sign that the home building industry is beginning to rebound, sales of new single-family homes were up 5.1 percent year-over-year in October 2009, according to a U.S. Census Bureau and the Department of Housing and Urban Development report released today. October sales, at a seasonally-adjusted rate of 430,000 homes sold per year, were also 6.2 percent above September’s 405,000 rate, with an average sales price of $261,100. The majority of those homes were sold in the country’s southern region, as has long been the trend. There was a 6.7-month supply of new homes on the market — 239,000 — at the month’s close, the vast majority of which were either already under construction or completed. The numbers, which came on the heels of an October Commerce Department report that shows housing starts dropping 10.6 percent to their lowest level since April, proved a boon to building companies today. Stocks of many of the major U.S. home builders spiked this morning, the Street reported. TRD