New U.S. home sales up in October

October had the strongest pace of new-home sales activity nationwide since May, according to new data from the U.S. Commerce Department.

Sales of new single-family homes climbed 1.3 percent from the previous month, to a seasonally adjusted annual rate of 307,000.

“Builders have been seeing some marginal improvement in sales activity over the past few months, particularly in select markets where consumer confidence is higher due to improved economic conditions,” said Bob Nielsen, chairman of the National Association of Home Builders    (NAHB) and a builder from Reno, Nev., in a press release. “While this trend is encouraging, overall sales activity is still well below normal due to the effects of overly tight credit conditions for builders and buyers, the continued flow of distressed properties on the market and inaccurate appraisal values on new homes.”