New Residential Home Sales increased 6.6% from last month, with an annual rate sale of 307,000 new homes. Last month's new home sales were revised up 1.1%. There is now an 8 month's supply to sell new homes at the current rate. Below is the new home sales graph since 1980. Just seeing how low new home sales are in comparison to the last 30 years is worth a look.

Sales of new single-family houses in September 2010 were at a seasonally adjusted annual rate of 307,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 6.6 percent (±16.9%)* above the revised August rate of 288,000, but is 21.5 percent (±13.3%) below theSeptember 2009 estimate of 391,000.

The median sales price of new houses sold in September 2010 was $223,800; the average sales price was $257,500. The seasonally adjusted estimate of new houses for sale at the end of September was 204,000. This represents a supply of 8.0 months at the current sales rate.

Calculated Risk has a post on the difference between existing home sales and new home sales, which shows a huge gap between amount of new home sales vs. existing home sales, caused by foreclosures.