AURORA, Colo. -- U.S. Department of Commerce stats released Monday shed the first encouraging light on a sluggish housing market.

New homes sales recorded a 2.7 percent increase for September, according the Department of Commerce report. Overall, new home sales were down 33 percent from last year.

While Colorado also saw new home sales decline, the state’s top new home producer, DR Horton, appeared to be bucking market trends with home sales in Aurora, a suburb east of Denver, and Colorado’s third largest city.

“Even though we’re going into the holidays, our traffic has not slowed down on the weekends,” said Julia Unkrich, sales manager at The Conservatory.

Unkrich said the southeast Aurora neighborhood was the company’s top-selling community in September.

Unkrich said 14 houses have sold in the last three months and 22 homes are in backlog, which means they're in the construction phase for waiting buyers.

"Homes that are built well and in a great community that's convenient are factors for us," Unkrich said.

Additional sales data showed 57 new homes sold in The Conservatory since Jan. 1. The figure was part of the Denver Residential Survey conducted by Metrostudy.

“I thought we might be mavericks,” said David McCabe, who recalled when he and his wife first set out to buy a new home earlier this year.

“But the building here is just incredible,” said McCabe.

“It’s booming,” said McCabe’s wife, Jeannie Mayeux.

The couple said they visit their home, currently under construction, a couple times a week with great excitement.

“This is my first new home,” Mayeux said with a smile.

7NEWS obtained overall Denver market sales numbers from Hanley Wood Market Intelligence, which is used by the homebuilding industry for analysis and facts on 75 housing markets nationally.

The most recent data showed Traditions, another DR Horton community in Aurora, leading the market with 39 homes sold from January to August of this year. Final numbers from the third quarter numbers are expected later this week.

Behind DR Horton, the Hanley Wood research showed Anthem Highlands by Pulte Homes, and Anthem Ranch by Del Webb recording sales of 36 homes and 28 respectively. Both communities are in Broomfield, northwest of Denver, and were also sold between January and August of this year.

Hanley Wood recorded The Conservatory averaging 2.1 units sold per month; slightly lower than the Metrostudy data and information provided by the company.

Housing analysts told 7NEWS new home sales are being driven by builders offering slightly lower prices.

“DR Horton has a good product with competitive pricing,” said Mike Rinner, a housing analyst at the Genesis Group in Arapahoe County.

Rinner said decisions by DR Horton to “tweak it’s product” at The Conservatory is attracting buyers interested in homes under $300,000.

Independent Realtor Gary Bauer agreed.

“That’s what’s happening all over the Denver metroplex. If you have a home under $300,000 you’ll sell it,” Bauer said, and added new home buyers with a house to sell need to be prepared.

Resale homes currently average 100 days on the market, Bauer said.

Richmond American Homes and KB Homes round out the top three new home builders in Colorado.

A spokesman for KB Homes pointed to their community in the Stapleton neighborhood as one of Colorado’s top selling communities.

Pricing for the Denver community, which were created with celebrity Martha Stewart, start at $319,995. The community opened in September of last year.

“We currently have more than 35 homeowners who will be moved in by the end of the year, and as of Aug. 2008, we have sold 43 homes,” said Craig LeMessurier, Regional Director of Public Relations.

A spokesman for Denver-based MDC Holdings/Richmond American declined to comment for this story.

Like the national figures, analysts in Colorado observed a slight “uptick” in overall home sales locally in September.

Cory Hunsader, Regional Director with Hanley Wood, credited buyers with taking advantage of builder incentives –- including seller-funded down payment assistance with mortgages backed by the Federal Housing Administration, or FHA. The program ended Oct. 1 as part of the Housing and Economic Recovery Act of 2008, which President George W. Bush signed into law July 30.

A sales associate for Meritage Homes told 7NEWS Tuesday a new community in the Meridian area has also seen success since opening last month. "We have sold 14 homes," associate Karla Knapp said.

As for when Colorado’s housing market might fully recover, Gary Bauer said the “usual suspects” are needed; affordable mortgages and consumer confidence.

Bauer believes after the November election, and into 2009, the answer might be more clear.

Until then, couples like David and Jeannie can’t wait until their new home is completed just before Thanksgiving.

“I’ll need 45 feet of garland!” Jeannie said of her plans for Christmas décor.