Sales of newly built single-family homes fell unexpectedly in December as the bounce from an initial tax credit fizzled, the latest sign that the government-led housing recovery might be losing some steam.
The government data on Wednesday followed a report showing a plunge last month in sales of previously owned homes and a continued decline in sentiment among homebuilders, which could bode ill for the broader recovery from the worst recession since the Great Depression of the 1930s.
New home sales fell 7.6 percent to a 342,000 unit annual rate last month from an upwardly revised 370,000 unit pace in November, the Commerce Department said. It was the second straight month that new home sales had fallen. Markets had expected a 370,000 unit annual pace from November’s previously reported 355,000 unit rate.
Read the full article, “Fall in new home sales fans fears on recovery” at Reuters (Jan 28 2010)