Posted on 03/23/2011 7:25:38 AM PDT by mlocher
New home sales plunge to record low in February REUTERS — 6 MINUTES AGO WASHINGTON (Reuters) - New single-family home sales unexpectedly fell in February to hit a record low and prices were the lowest since December 2003, a government report showed on Wednesday, suggesting the housing market slide was deepening.
The Commerce Department said sales dropped 16.9 percent to a seasonally adjusted 250,000 unit annual rate, the lowest since records began in 1963, after an upwardly revised 301,000-unit pace in January. Sales plunged to all-time lows in three of the four regions last month.
Economists polled by Reuters had forecast new home sales edging up to a 290,000-unit pace last month from a previously reported 284,000 unit rate.
Compared to February last year sales were down 28 percent.
An oversupply of homes exacerbated by an increasing flood of properties falling into foreclosure is frustrating recovery in the housing market. Data on Monday showed a steep drop in sales of previously owned homes in February, with prices tumbling to a near nine-year low.
The median sales price for a new home tumbled 13.9 percent last month to $202,100, the lowest since December 2003. Compared with February last year, the median price fell 8.9 percent. Persistent price declines could dampen hopes of a pick-up in sales during spring.
At February's sales pace, the supply of new homes on the market rose to 8.9 months' worth, the highest since August, from 7.4 months' worth in January. There were 186,000 new homes available for sale last month, matching the prior month's inventory.
Unexpectedly -
In today’s economic world, this simply means housing prices will go up.
Down Goes The Market !!!!!!
They keep saying that word. I do not think it means what they think it means...
An oversupply of homes exacerbated by an increasing flood of properties falling into foreclosure is frustrating recovery in the housing market.
The author's explanation is tautological and non-sensical. He makes no effort to understand the root cause of the demise of the housing market.
It is not the oversupply of homes exacerbating the recovery. It is the Keynesian economic policies of the communist-in-chief together with his ultra-rabid anti-capitalist views that are destroying the nation's prosperity.
You meant Kenyonsian economic policies, right?
And all of this with interest rates a historic lows.....
Paging Inconceivable Guy! You have a call of some inconceivable news on the white courtesy phone.
It’s going to stay low as long as the retarded democraps and obummer won’t pull their heads out and allow drilling
We are on the right track.
Obama 2011
They forgot most of the private sector middle class has been beat like a drum, are broke, going broke and or are in no position to buy big ticket items.
Soon, new high end pick up trucks will cost more than your home..
This picture is broken.
Well...this would be a perfect time for the SEIU guys to spring their “crash the market” plan into action...
Inconceivable!
Well, that, and the fact that the homes they need to sell in order to buy a new/different home aren't worth squat.
I'm glad to see that Rush is presently covering this story.
He's not mentioned Glenn Beck once though, lol.
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