Sales of new homes soar in USA

Sales of new homes are soaring in the USA, according to the US goverment's latest figures.

New build property transactions in the 12 months to October jumped a staggering 25.4 per cent from the previous month's revised annual rate, according to the Commerce Department - the highest level in six months.

On a year-on-year basis, sales rose almost 22 per cent.

"It may very well be that a lot of folks are feeling better about their prospects and buying a new home," Keith Gumbinger, vice president of mortgage information site HSH Associates, told CNN.

The surge could also be partly due to easier financing for buyers, as builders are encouraged to get people moving into their new developments.