U.S. New-Home Sales Unexpectedly Rise to Highest in a Decade

The number of properties sold in which construction hadn't yet started reached the highest level since January 2007, signaling residential construction will accelerate in coming months.

A steady job market and low mortgage costs are helping propel demand for real estate and pushing up property prices. At the same time, it's a hurdle for some prospective buyers, especially younger Americans and those entering the market for the first time. The average selling price in October reached a record high $400,200, probably reflecting construction of higher-end homes.

New-home sales, tabulated when contracts get signed, account for about 10 percent of the market. They're considered a timelier barometer than purchases of previously owned homes, which are calculated when contracts close and are reported by the National Association of Realtors.

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Number of homes sold but not yet started rose to 247,000 in October from 184,000; another 221,000 dwellings sold were already under construction Commerce Department said there was 90 percent confidence that the change in sales last month ranged from an 11.8 percent drop to a 24.2 percent increase, underscoring the volatility of the data Report released jointly by the Census Bureau and Department of Housing and Urban Development in Washington.