Sales of new single-family homes soared 10.7% to a 495,000 seasonally adjusted annual rate in October, according to data released by the Commerce Department Wednesday.
The increase came after a revised 12.9% drop to a 447,000 rate in September, originally reported as an 11.5% decrease to 468,000.
Thomson Reuters' poll of economists had predicted a 500,000 sales level for October.
Sales of new homes were 4.9% better than the 472,000 rate in October 2014, Commerce said.
The supply of new homes at the current sales rate fell to 5.5 months from 6.0 months.
At the end of October, the number of new homes on the market grew to 226,000 from 223,000.
The unadjusted average price of a new single-family home slipped to $366,000 from $369,600.
Meanwhile, the unadjusted median price fell to $281,500 from $307,800 in the previous month.
Sales increased in three of the four regions of the country in the month.
Sales in the Northeast were up 135.3% to 40,000 from 17,000 and sales in the South grew 8.9% to 281,000 from 258,000, and Midwest sales rose 5.3% to 60,000 from 57,000. Sales in the West fell 0.9% to 114,000 from 115,000.
