WASHINGTON -- The U.S. Commerce Department said Wednesday sales of new homes rose 3.5 percent in September to a 1.206 million annual rate, the third-highest pace on record.
Commerce said August sales were revised downward to a rate of 1.165 million, a 5.8 percent gain from July. Previously, August new home sales were reported at a 1.184 million pace.
Economists on Wall Street had expected a modest decline in September new home sales to an annual rate of 1.150 million.
September new home sales were up in all U.S. regions except the West, where sales were down 0.8 percent. Sales rose 6 percent in the Northeast, jumped 12.3 percent in the Midwest, and increased 2.7 percent in the South.
Strong demand pulled the inventory of homes on the market to a 4.1-months supply, down from 4.2 months in August.
The average and median home prices fell last month with median prices dropping to $197,700 from $215,900 in August and the average price of a new home falling to $255,100 from $269,300.
