US new-home sales slide to seven-year low
WASHINGTON (AFP) — Sales of new US homes slid 8.3 percent in August to their lowest level in seven years, Commerce Department data showed Thursday in yet another sign of the troubles in the real estate market.
The report showed new-home sales at a seasonally adjusted annual pace of 795,000, worse than market expectations of a decline to a rate of 825,000.
The pace of new-home sales is down 21.2 percent from a year ago.
Also, the median sales price fell to 225,700 dollars, an 8.3 percent decline from the previous month and a level not seen since January 2005.
The report included a modest downward revision to July new-home sales to an 867,000 pace from 870,000, in a month that saw a surprise gain, possibly with troubled homebuilders clearing out inventories.
The inventory of new homes on the market in August fell 1.5 percent to 529,000 units. If the rate of sales stays at levels seen in August, the supply of new homes on the market would take 8.2 months to sell.
The weakness in housing has been the main drag on the US economy this year, but analysts are divided on how long the slump will last.
The latest report reflects sales in August, when financial markets were rocked by credit concerns and many lenders retrenched.
Since then, the Federal Reserve has cut is key federal funds rate by half a point, to 4.75 percent, in an effort to ease stress in the credit and housing markets.
