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Date published: 10/25/2012
WASHINGTON--U.S. sales of new homes jumped last month to the highest level in more than two years, further evidence of a sustained housing recovery that could help lift the lackluster economy.
The Commerce Department said Wednesday that new home sales rose 5.7 percent in September to a seasonally adjusted annual rate of 389,000. That's up from a rate of 368,000 in August and the highest rate since April 2010, when a federal homebuyer tax credit inflated sales.
Sales have risen 27.1 percent in the past year. That's the strongest yearly gain since February, although sales are still well below healthy levels.
Building permits have been on the upswing in the Fredericksburg area, suggesting gains in new home construction. Several new residential developments have begun. There is about a 4.4-month supply of existing homes on the market based on the September sales pace. The limited supply has led to new homes getting built, though the pace of building is far from where it was during the boom.
The national figures suggest the housing recovery is strengthening. The increase follows other reports that show home prices are rising more consistently, builders are starting to build more homes and sales of previously occupied homes are up in the past year.