Credit, Economy and Financial News from TruckingFactor.com

New Home Sales Fall 10.2% in January

The Commerce Department reported that new home sales fell 10.2% in January to a seasonally adjusted annual rate of 309,000, the worst showing on records going back to 1963. The record low annual pace shattered the previous all-time monthly low set in September 1981. It was the sixth consecutive monthly sales decline. The Northeast was the only region where home sales grew in January. Moreover, the median sales price for a new home fell to $201,100 in January, a 9.9% drop. With a glut of unsold homes on the market and foreclosures mounting, builders are forced to slash construction. Until prices fall to a point where buyers get back into the market and reduce the backlog of unsold homes, new home construction will likely remain weak.

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Date Last Updated: 03/04/2009