The Commerce Department says new home sales in October rose 6.2percent to a seasonally adjusted annual rate of 430,000 from a upwardly revised September rate of 405,000.
The October increase, which was the highest of more than a year, was better than the forecasts of economists who expected a pace of410,000 units.
The median sales price of 212,200 U.S. dollars in October, was down 0.5 percent from 213,200 dollars a year earlier.
Analysts say that the housing market was largely driven by the government's stimulus policy.
A 8,000 dollars tax credit program for first-time home buyers, which was set to be due on Nov. 30, was extended by the Congress earlier this month to April 30 next year.