Credit, Economy and Financial News from TruckingFactor.com

New Home Sales Plunge in December

New home sales plunged 14.7% in December to a seasonally adjusted annual rate of 331,000, the Commerce Department reported, as rising foreclosures, a glut of unsold homes in many markets and a recession makes life difficult for homebuilders. December's sales pace was the lowest on records dating back to 1963, the government added. For all of 2008, homebuilders sold 482,000 homes, the lowest amount since 1982. The median price of a new home sold in December was $206,500, a drop of 9.3% from a year ago. Analysts note that prices will have to fall even more before buyers re-enter the market. The overall decline in new home sales reflected a 28% drop in the Northeast, a 20% decline out West, a 12% drop in the South and a 6% dip in the Midwest.

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Date Last Updated: 02/09/2009