New home sales down 28.5%, building permits down 4.2% in October 2010

New single-family home sales fell 28.5% year-over-year in October, from 396,000 in October 2009. Month-over-month, the decline was 8.1%:

New home sales tumbled in October while the median home price dropped to the lowest point in seven years.

Sales of new single-family homes declined 8.1 percent to a seasonally adjusted annual rate of 283,000 units in October, the Commerce Department reported Wednesday.

It was the fourth time the sales rate has dropped in the past six months. New home sales are just 2.9 percent above August's pace of 275,000 units — the lowest level on records dating back to 1963.

Top 10 cities where home prices have improved most (or fallen least) in the past year

Many economists believe it could take three years for the industry to get back to a healthy annual rate of sales of around 600,000 homes.

The median price of a home sold in October dipped to $194,900, the lowest level since October 2003.

Building permits are down 4.2% year-over-year.