New home sales moving at a slow pace

New government data showed that home sales petered off during October.

The Commerce Department reported that new home sales slowed to a seasonally adjusted annual rate of 283,000 in October, 8.1 percent below the 308,000 rate from September and 28.5 percent off the pace set during October 2009, when the federal homebuyer tax credit was in full swing. The report added that the national supply of new homes was at 8.6 months, still above the six to seven-month supply normally seen in a healthy market.

The report added that those moving into a new home during October did so at a median price of $194,900.

Though sales were down, analysts say it's just the nature of a volatile housing market.

"Sales are bumping along the bottom, showing no real inclination to start recovering or, thankfully, to fall any further," Ian Shepherdson, chief U.S. economist at High Frequency Economics, told the Associated Press.

Additionally, positive mortgage gains could mean more families will be moving in the next few months. The Mortgage Bankers Association reported that applications to purchase a home rose 14.4 percent during the week ending November 19.
 

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