New-Home Sales Tumble 8.3%
As Prices Decline More Than 7%
By JEFF BATER
September 27, 2007
WASHINGTON -- New-home sales resumed falling in August, sinking to the lowest level in seven years, and prices tumbled, signaling the housing sector will remain a drag on the U.S. economy.
Sales of single-family homes decreased by 8.3% last month to a seasonally adjusted annual rate of 795,000, the Commerce Department said Thursday. July new-home sales rose 3.8% to an annual rate to 867,000; originally, the government said July sales rose by 2.8% to 870,000.
The median estimate of 26 economists surveyed by Dow Jones Newswires was a 4.6% decline in August sales to an 830,000 annual rate. The level of 795,000 was the lowest since 793,000 in June 2000.
Year-to-year, new-home sales were 21.2% lower than the level in August 2006.
The housing sector has cost the U.S. economy growth for six straight quarters. Tightening of lending standards and troubles in the mortgage market have made it more difficult for would-be buyers. And falling home prices are causing them to think twice about a purchase.
The median price of a new home decreased by 7.5% to $225,700 in August from $243,900 in August 2006. The average price declined by 8.0% to $292,000 from $317,300 a year earlier. In July this year, the median price was $246,200 and the average was $306,200.
The ratio of new houses for sale to houses sold rose during August, going to 8.2 from 7.6 in July. There were an estimated 529,000 homes for sale at the end of August, down from July's 537,000.
Regionally last month, new-home sales decreased 20.8% in the West and 14.7% in the South. Sales increased 42.3% in the Northeast and 20.5% in the Midwest.
An estimated 68,000 homes were actually sold in August, down from 74,000 in July, based on figures not seasonally adjusted.
As Prices Decline More Than 7%
By JEFF BATER
September 27, 2007
WASHINGTON -- New-home sales resumed falling in August, sinking to the lowest level in seven years, and prices tumbled, signaling the housing sector will remain a drag on the U.S. economy.
Sales of single-family homes decreased by 8.3% last month to a seasonally adjusted annual rate of 795,000, the Commerce Department said Thursday. July new-home sales rose 3.8% to an annual rate to 867,000; originally, the government said July sales rose by 2.8% to 870,000.
The median estimate of 26 economists surveyed by Dow Jones Newswires was a 4.6% decline in August sales to an 830,000 annual rate. The level of 795,000 was the lowest since 793,000 in June 2000.
Year-to-year, new-home sales were 21.2% lower than the level in August 2006.
The housing sector has cost the U.S. economy growth for six straight quarters. Tightening of lending standards and troubles in the mortgage market have made it more difficult for would-be buyers. And falling home prices are causing them to think twice about a purchase.
The median price of a new home decreased by 7.5% to $225,700 in August from $243,900 in August 2006. The average price declined by 8.0% to $292,000 from $317,300 a year earlier. In July this year, the median price was $246,200 and the average was $306,200.
The ratio of new houses for sale to houses sold rose during August, going to 8.2 from 7.6 in July. There were an estimated 529,000 homes for sale at the end of August, down from July's 537,000.
Regionally last month, new-home sales decreased 20.8% in the West and 14.7% in the South. Sales increased 42.3% in the Northeast and 20.5% in the Midwest.
An estimated 68,000 homes were actually sold in August, down from 74,000 in July, based on figures not seasonally adjusted.
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