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"Businesses are very cautious so they're not hiring and they're not distributing their profits to consumers"
- Michelle Meyer, a senior U.S. economist at Bank of America Corp.
Sales of new U.S. houses rose 1.3 per cent to an annual rate of 307 thousand in October from 303 thousand in September, while prices decreased 0.5 per cent, according to the data published by the Census Bureau on Monday.
"The housing market remains out of balance, with much more supply than demand," said Michelle Meyer, a senior U.S. economist at Bank of America Corp.
"Builders are still competing with the significant overhang of existing homes for sale. Once we get past the overhang of foreclosed properties, single-family housing will turn around fairly rapidly, but we're a good two years away from that."