U.S. new home sales up 1.3 percent in October

WASHINGTON, Nov. 28 (Xinhua) -- Sales of new single-family houses in the United States rose modestly in October, but housing prices continued to fall, indicating the struggling property market, reported the U.S. Commerce Department on Monday.

Sales of new single-family houses in October were at a seasonally adjusted annual rate of 307,000 units, up 1.3 percent from the revised September rate of 303,000 units, and is 8.9 percent above the October 2010 estimate of 282,000 units, said the department.

The median sales price of new houses sold in October dipped to 212,300 U.S. dollars, 0.4 percent lower than in September.

Single-family housing starts accounted for around 70 percent of the total new home construction including houses and apartment buildings in the nation.

U.S. home prices have tumbled, the job market remains weak and unemployment has been stuck near 9 percent for more two years. Many economists held that the housing market would remain in low level of recovery for about three to five years.

The U.S. housing industry is suffering its worst slump in decades. Experts hold that the home price downturn, large inventory of foreclosured houses and a persisting credit crunch have been a major drag on the property sector as well as the overall economic recovery.