New home sales hit record low

via Yahoo!:



New home sales hit record low


WASHINGTON (Reuters) – Sales of newly built single-family homes unexpectedly fell to a record low in January, according to government data on Wednesday that hinted at potential trouble for the fragile housing market recovery.

The Commerce Department said sales dropped 11.2 percent to a 309,000 unit annual rate, the lowest level since records started in January 1963, from an upwardly revised 348,000 in December.

It was the third straight month that new home sales fell and the percentage decline in January was the largest in a year. Analysts polled by Reuters had expected new home sales to increase to a 360,000 unit annual pace from December's previously reported 342,000 units.

Compared to January last year, sales fell 6.1 percent.

"It's awful. This is with the home buyer tax credit. I don't understand people who say the housing market is turning," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey. ...........(more)

The complete piece is at: http://news.yahoo.com/s/nm/20100224/bs_nm/us_usa_economy

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