New single-family home sales rose 1.3% in October when compared to the previous month, a government report said Monday. In October, new home sales hit a seasonally adjusted annual rate of 307,000, up from 303,000 in September, according to a study from the  U.S. Census Bureau and the Department of Housing and Urban Development. Compared to October 2010, home sales are up 8.9% when considering 282,000 homes were sold during that month last year. New single-family home sales rose 1.3% in October when compared to the previous month, a government report said Monday. In October, new home sales hit a seasonally adjusted annual rate of 307,000, up from 303,000 in September, according to a study from the  U.S. Census Bureau and the Department of Housing and Urban Development. Compared to October 2010, home sales are up 8.9% when considering 282,000 homes were sold during that month last year. While sales edge up, the median sales price in October hit $212,300, and the average price was $242,300. The median sales price of new homes in September was $204,400, while the average price hit $243,900. After studying the report, analysts with Econoday said, "Today's report joins a growing list of housing indicators that are pointing to limited recovery for the sector, recovery supported by very low mortgage rates. Yet housing is still held down by foreclosures and by tight credit conditions that are limiting the number of home buyers." Capital Economics released a statement on the report, saying, "The 1.3% rise in new home sales in October was not especially encouraging given that it came at the expense of a 3.3% downward revision to the previous month's numbers. More generally, new home sales are not going to return to normal levels when new builds are having to compete with cheap foreclosed properties." Write to Kerri Panchuk.