New-Home Sales Tumbled 9% Amid Falling Prices in November

[Amerigo Vespucci]

Source: The Wall Street Journal

WASHINGTON -- New-home sales retreated during November, sinking to the lowest annual rate in 12 years. Home prices also receded, a further negative sign for consumer spending and the economy.

Sales of single-family homes decreased by 9% last month to a seasonally adjusted annual rate of 647,000, the Commerce Department said Friday. October new-home sales rose 1.7% to an annual rate to 711,000; originally, the government said October sales rose by 1.7% to 728,000.

Economists had forecast a drop in November sales to an annual rate of 715,000. The actual rate of 647,000 reported for the month was the lowest recorded since 621,000 in April 1995.

Year over year, new-home sales were 34.4% lower than the level in November 2006. That's the largest year-to-year decline since 35.3% in January 1991.

Read more: http://online.wsj.com/article/SB119884885661555567.html?mod=googlenews_wsj

[ixion]

1. since 35.3% in January 1991

ah yes... and we all remember who was at the helm at that point...

Nothing like a little BFEE 'magic' to really screw things up.

[Robbien]

2. In the midwest home sales dropped 27 percent

Wow.

Only 19% drop in the East and only a 6% drop in the South. But what is up with the West? An increase of 4%?