Sales of new homes fell 7.8 percent in September, the biggest decline in 16 months.
The Commerce Department said sales of new single-family homes dropped to a seasonally adjusted annual rate of 659,000 units in September, following a 2.1 percent gain in August.It was the biggest decline since a 10.9 percent drop in May 1987.
The statistic provided further evidence that the economy slowed during the third quarter of the year.
The big decline was accompanied by a rise in new home prices.
The median price for new homes sold in September was $118,900, an 8.1 percent jump over the August sales price of $110,000. The median price means half the homes sold for more and half for less.
The average sales price also rose, climbing 4.5 percent to $146,300 in September.