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2017.11.2710:18:00UTC+00U.S. New Home Sales Unexpectedly Jump To Ten-Year High In October

For the second consecutive month, the Commerce Department has released a report showing an unexpected jump in new home sales in the U.S.

The report released by the Commerce Department on Monday showed new home sales surged up by 6.2 percent to an annual rate of 685,000 in October from the revised September rate of 645,000.

The notable increase surprised economists, who had expected new home sales to drop to a rate of 625,000 from the 667,000 originally reported for the previous month.

With the unexpected increase, new home sales reached their highest annual rate since hitting 727,000 in October of 2007.

The unexpected jump in new home sales was partly due to strength in the Northeast, where new home sales spiked by 30.2 percent to a rate of 56,000.

New home sales in the Midwest also surged up by 17.9 percent to a rate of 79,000, while sales in the West climbed by 6.4 percent to a rate of 167,000 and sales in the South rose by 1.3 percent to a rate of 383,000.

The report said the median sales price of new houses sold in October was $312,800, down 3.7 percent from $324,900 in September but up 3.3 percent from $302,800 in the same month a year ago.

The seasonally adjusted estimate of new houses for sale at the end of October was 282,000, representing a supply of 4.9 months at the current sales rate.

Last Tuesday, the National Association of Realtors released a separate report showing existing home sales jumped by much more than anticipated in the month of October.

The report said existing home sales surged up by 2.0 percent to an annual rate of 5.48 million in October from a downwardly revised 5.37 million in September.

Economists had expected existing home sales to climb by 0.7 percent to a rate of 5.43 million from the 5.39 million originally reported for the previous month.

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