Sales of new homes rebounded in October

New home sales surged in October, rebounding from a steep drop the previous month.

Sales of single-family homes rose 10.7 percent to a seasonally adjusted annual rate of 495,000 units in October, after a 12.9 percent drop in September, the Commerce Department reported Wednesday.

{mosads}”Sales this year are running 15.7 percent ahead of 2014,” said David Crowe, chief economist for the National Association of Home Builders (NAHB).

“With a firming job market, affordable home prices and rising pent-up demand, today’s report is another indicator that the housing market continues to move on a modest upward trajectory,” Crowe said.

Sales rose in three out of four regions.

They were up 135.3 percent in the Northeast, 5.3 percent in the Midwest and 8.9 percent in the South. Sales fell 0.9 percent in the West.

“Our builders are reporting continued optimism in the housing market, and are adding inventory in anticipation of future business,” said Tom Woods, chairman of the NAHB and a homebuilder from Blue Springs, Mo.

The inventory of new homes for sale was 226,000 units in October — a 5.5-month supply at the current sales pace.

The housing sector is looking to have its best year since the housing crash.

Mortgage rates remain below 4 percent and prices are rising at a slower pace.