The sales of new-homes in the United States have recovered after the sudden drop in September.
According to the Department of Commerce, the new-home sales in the U.S. have increased by 10.7 percent last month to a seasonally adjusted annual rate of 495,000.
Americans regained much of their desire to own new homes this year. Home sales have surged 15.7 percent year-to-date, thanks to the solid employment possibilities and low mortgage rates.
In a report from ABC News, Blerina Uruçi, an analyst at Barclays, said, "We still see new-home sales consistent with a moderate and sustained recovery in the housing market."
Reuters reported that Economist polled by them has forecasted that new-home sales to rebound to a rate of 500,000 units. Compared to the same month last year, sales were up 4.9 percent last October.
The October figures of home-buying surged by 135.5 percent in the North, 8.9 percent in the South, 5.3 percent in the Midwest, while dropping 0.9 percent in the West.
The rebound of new-home sales in October offers assurances that the housing market is still good even with the decline of home resales, housing starts, and confidence among builders last month.
The housing supply remains less than half of what it was at the peak of the housing boom. The supply houses are expected to be cleared by 5.5 months if the sales pace in October continues.
The median price for a new-home is $281,500, down 6.0 percent from a year ago.
Sales of existing-home on the other hand, continue to slow down due to the rising prices that creates affordability problems to homebuyers. Despite the decline, the purchases for existing-homes have increased by 3.9 percent compared to last year. The sales of existing-homes are continually improving even with the 4.5 percent decline in the number of listings in the market.
