Industry NewsMarkets & Economy

New home inventory dwindles

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Sales of new single-family homes rose 6.2 percent from September to October, to a seasonally adjusted annual rate of 430,000, the Census Bureau said today.At that pace of sales -- a 5.1 percent increase from a year ago -- the 239,000 new homes on the market represented 6.7 months of supply, down from 7.4 months in September and 11.1 months a year ago. Analysts generally consider a six-month supply of homes an even balance between supply and demand.The months' supply of new homes peaked at 12.4 months in January, when there were 340,000 homes on the market and sales had slowed to an annual rate of 329,000.The median sale price of a new home also increased for the second month in a row, to $212,200, although that number is not seasonally adjusted. Looking back a year, the median price of a new home was essentially unchanged from $213,200, and down 14.4 percent from $247,900 in 2007.The National Association of Realtors reported this week that sales of existing U.S. homes rose 10.1 percent...