2017.11.2723:38:00UTC+00U.S. New-Home Sales Unexpectedly Rise in October

Purchases of new homes in the U.S. surprisingly increased in a broad manner in the previous month, hitting its fastest rate in 10 years and offering an encouraging indication for residential construction.

According to government data released on Monday, single-family home sales increased 6.2 percent month-on-month to an annual rate of 685, 000, its highest since October 2007's 645, 000 rate.

Home sales in the South region rose for the third straight month, its fastest rate in a decade. Purchases in other areas of U.S. also rose.

A solid job market and low mortgage costs are helping to drive up demand for real estate and pushing up property prices. Average prices rose 3.3 percent year-on-year to $312, 800. Supply at homes at current sales declined to 4.9 months, the smallest since July 22015. At the end of October, 282, 000 new houses were on the market.

New home sales represent around 10 percent of the real estate market, considered to be a more timely indicator than purchases of second-hand homes.

According to the Commerce Department, there was a 90 percent confidence that the shift in sales in the previous month ranged from an 11.8 percent fall to a 24.2 percent increase, underlining the volatility of the data.