New home sales jumped 14% in September

By MARTIN CRUTSINGER
AP Economics Writer

WSHINGTON (AP) — Sales of new homes jumped 14% in September to the fastest pace in six months as strong demand helped offset rising prices. The Commerce Department reported Tuesday that sales of new single-family homes rose to a seasonally adjusted annual rate of 800,000 units last month after sales had fallen 1.4% in August. The median price of a new home rose to $408,800 in September, up 9.5% from a year ago. Prices are being pushed higher by strong demand and increases being faced by builders who are grappling with shortages of critical building supplies such as lumber.