New home sales dip 0.3% in October

Sales of new homes fell slightly in October and the September sales pace was slower than initially thought.

The Commerce Department says home sales dipped 0.3% in October to a seasonally adjusted annual rate of 368,000. That's down marginally from the 369,000 pace in September, which was revised lower from an initial 389,000.

Sales are still 20.4% higher than the same month last year, supporting other data that show the housing market recovering. Still, new-home sales are well below the annual rate of 700,000 that economists consider healthy.

Sales fell a sharp 32.3% in the Northeast, but the government said Hurricane Sandy had only a minimal effect on the housing data because it hit at the end of the month.