The reason is simple. Builders aren't constructing new homes in addition to the weak housing market.
New home sales fall to slowest pace since 1991WASHINGTON (AP) -- Sales of new homes fell in October to the lowest point in nearly 18 years while the median price of a new home dropped to the lowest level since 2004.
The Commerce Department reported Wednesday that new home sales decreased 5.3 percent last month to a seasonally adjusted annual sales pace of 433,000 homes, the lowest level since January 1991, another period when the country was undergoing a steep housing downturn.
The median price of a new home sold in October fell to $218,000, down 7 percent from a year ago. It was the lowest median sales price since September 2004.
The drop in new home sales was bigger than analysts had expected and left sales 40.1 percent below where they were a year ago.
Read the whole story.
Leave a comment