U.S. new-home sales pick up the pace

WASHINGTON – Americans bought new homes in October at the fastest pace in a decade – a 6.2 percent monthly increase that reflects both the underlying strength of the economy and the worsening shortage of existing homes for sale.
The Commerce Department said this past week that new-home sales in October rose to a seasonally adjusted annual rate of 685,000. That marks the third straight monthly gain and the best sales clip since October 2007. Much of the sales growth came from the Northeast and Midwest, with the South and West posting smaller increases.
Many buyers are turning to new construction because there is a shrinking supply of existing homes for sale. But new construction has been unable to keep up with demand.