According to HUD and the U.S. Census Bureau, sales of newly built, single-family homes rose 10.7 percent to a seasonally adjusted annual rate of 495,000 units in October 2015.
"Our builders are reporting continued optimism in the housing market, and are adding inventory in anticipation of future business," said Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo.
"Sales this year are running 15.7 percent ahead of 2014," said NAHB Chief Economist David Crowe. "With a firming job market, affordable home prices, and rising pent-up demand, today's report is another indicator that the housing market continues to move on a modest upward trajectory."
New-home sales were up in three out of the four regions. Sales rose 135.3 percent in the Northeast, 5.3 percent in the Midwest, and 8.9 percent in the South. Sales fell 0.9 percent in the West.
The inventory of new homes for sale was 226,000 units in October. This is a 5.5-month supply at the current sales pace.