US new home sales fall sharply in September

WASHINGTON – Sales of new homes plunged sharply in September to the slowest pace in 10 months, as higher prices and slower overall economic growth weigh on the housing market.

The Commerce Department said new-home sales fell 11.5 percent last month to a seasonally adjusted annual rate of 468,000, ending a two-month streak of accelerating sales. Purchases of new homes slid in the Midwest, South and West. It dropped a sharp 61.8 percent in the Northeast in September.

Still, for much of the year, home-buying has reflected a stronger economy supported by steady hiring. New-home sales have risen a solid 17.6 in the first nine months of 2015.

But prices have climbed sharply as well. The median new-home sales price has jumped 13.5 percent from a year ago to $296,900.