New home sales dropped to an annualized rate of 283,000 in October, leaving 202,000 new homes (8.6 months worth) on the market, according to a report released Wednesday by the Census Bureau and the Department of Housing and Urban Development. New home sales are down 8.1% from September and 28.5% from October 2009. The National Association of Realtors reported Tuesday that existing home sales trended down in October also, dipping 2.2% compared to September. Collectively in 2010, the annualized rate of new home sales is 273,000. This is down 14% from 2009. The West region saw the steepest decline in new homes sales compared to the year- ago period, down 46.9%, followed by the Midwest (down 27.8%), the South (down 23%) and the Northeast (down 12.1%). The median sales price for a new home in October was $194,900, down 14% from $226,300 in September and down 9% from $215,100 one year ago. In October, the average sales price also decreased, down to $248,200 from $269,700 in September and $263,800 in October 2009. Write to Christine Ricciardi.