Washington, Muharram 25, 1438, October 26, 2016, SPA -- Sales of new U.S. homes rose in September, the government reported Wednesday, signaling that demand remains strong despite a shortage of properties on the market. The Commerce Department said new-home sales increased 3.1 percent last month to an annual rate of 593,000. So far this year, sales have risen 13 percent compared to the same period in 2015. The improvement largely reflects the improved economic outlook amid strong hiring, growing wages, and low mortgage rates. Sales have steadily grown over the past three years from the depths of the 2006 housing bust and 2007-2009 Great Recession. Still, new-home sales lag their historic pace of about 650,000 a year. If the sales pace for 2016 holds, sales will total about 566,000 at the end of the year. The greater demand for new properties has caused smaller inventories of newly built homes. The market contained only 4.8 months’ supply of new homes in September, down from 5.8 months a year ago. The declining supply of new homes has modestly lifted median prices, which have risen 2.7 percent from a year ago. --SPA 19:42 LOCAL TIME 16:42 GMT www.spa.gov.sa/w