NEW YORK (

TheStreet

) -- Sales of new homes rose 1.3% in October according to a Census Bureau report.

Single-family home sales rose to an adjusted annual rate of 307,000 from a revised 303,000 in September.

Economists surveyed by Reuters expected sales to have increased to 315,000 annualized units from the originally reported 313,000 units in September.

The average sales price for October was $242,300, and there is an estimated 6.3 month housing supply at current sales rates.

"Overall, a slightly below expected release that shows housing remaining at very subdued levels," said a report from CRT Capital.

-- Written by Ross Tucker in New York.

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