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Summary Box: September new-home sales tick up

AP News
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Posted: Oct 26, 2011 4:35 PM
Summary Box: September new-home sales tick up

SALES UP: Sales of new homes rose in September after four straight monthly declines, largely because builders cut their prices in the face of depressed demand. Sales increase 5.7 percent last month to a seasonally adjusted annual rate of 313,000 homes, the Commerce Department said Wednesday.

STILL STRUGGLING: The sales pace is still less than half the 700,000 homes economists say must be sold to sustain a healthy housing market.

LOWER PRICES: A big reason for the gain was the median sales price fell 3 percent to $204,400 _ the lowest since October 2010.