Us new home sales up in october but prices fall back

New-home sales increased 1.3% last month to a seasonally adjusted annual rate of 307,000.

However, the figure is less than half the 700,000 annual rate that experts believe is needed to sustain a recovery.

The average price of a new home fell 0.5% to $212,300 (£136,000).

It comes as the number of new homes for sale in the US fell to a record low of 162,000, hampered by a lack of credit available to developers.

Source: BBC.co.uk