New Home Sales Plunge 10.2%
Sales of new homes plunged 10.2 percent in January to their weakest levels in five years, the Commerce Department said moments ago.
The median price of a new home dropped 12 percent to $201,100.
New home sales dropped to a record-low annual pace of 309,900.
Today's news comes on the heels of poor existing-home sales news released yesterday.
There's some more bad news: Inventories of new homes actually rose from a 12.4-month supply to a 13.3-month supply. That means there's way too many new homes for potential buyers.
A bottom to the housing bust will only occur when inventories fall more in line with demand and the supply starts shrinking, not increasing, as it did in January.
February 26, 2009; 10:13 AM ET
Categories: The Ticker | Tags: home prices, home sales
Save & Share: Previous: Markets Open Higher
Next: White House: Unemployment to Peak at 8.1% This Year
The comments to this entry are closed.