New-Home Sales Plunge 16.6%

Wednesday, February 28, 2007

Sales of new homes plunged 16.6% in January to a seasonally adjusted annual rate of 937,000, according to the Commerce Department. It is the the biggest percentage decline in 13 years.

The median price of a new home was down 2.1% year-over-year, at $239,800.

New-home sales are down more than 50% year-on-year in the West, the largest percentage drop in the region since 1981. In the South, sales are down 11% in the past year. Sales are down 2% in the Northeast and are up 1% in the Midwest