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Sales of new American homes plunged in February to the fewest on records dating back nearly half a century, a dismal sign for an already-weak housing market., B5 X+ T4 y0 {6 s
# o# A" U3 l7 F- n3 S: p6 KThe Commerce Department said Wednesday new home sales fell 16.9 per cent last month to a seasonally adjusted annual rate of 250,000 homes. It's the third straight monthly decline and far below the 700,000-a-year pace that economists view as healthy.1 U* D& B ? ^. Q \
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The median price of a new home dropped nearly 14 per cent to $202,100, the lowest since December 2003. New home prices are now 30 percent higher than of those being resold.8 ?: S3 @" w+ j5 [
/ ], I8 W! |* NBuilders have struggled to compete with a wave of foreclosures that has lowered the price of previously occupied homes. High unemployment, tight credit and uncertainty over prices have also kept many potential buyers from making purchases. |
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