New Homes Set Record: Sales Fell 26 Percent in '07

New York Times (01/29/08) P. C3; Grynbaum, Michael M.
The Commerce Department's recent new-home sales report reveals substantial weakness in the housing market; and more declines are on the horizon, according to some economists. The report shows a 26-percent plunge in sales volume last year compared to 2006 and just a 0.2-percent increase in the median price to $246,900 over the same period. New-home sales fell 4.7 percent to an annual pace of 604,000 in December, and the median price of $219,200 marked a decline of 10.9 percent from the same month of the prior year. Regionally, the largest decrease of 56 percent was recorded in the Midwest during the year-over-year period ended in December; while sales fell 43 percent in the West, 36 percent in the South and 27 percent in the Northeast. The Commerce Department report also reveals a revision in November's new-home sales to an annual rate of 634,000 from the initial estimate of 647,000.