(CN) — Americans snapped up new homes in October at the fastest pace in a decade, the Commerce Dept. said Monday.
The government said new-home sales rose 6.2 percent in October to a seasonally adjusted annual rate of 685,000.
That jump was the third straight monthly gain and the best sales clip since October 2007.
Much of the sales growth came from the Northeast and Midwest, with the South and West posting smaller increases, the Commerce Department said.
The strong sales are seen as a reflection both of the strength of the economy and the ongoing shortage of existing homes for sale. As a result, many buyers are turning to new construction, but homebuilders are struggling to keep up with demand.
As a result, the average sales price of a new home jumped 13.6 percent over the past 12 months to $400,200.
Currently, there is only 4.9 months’ supply of newly-built homes on the market, the lowest reading since July 2016, the government said.