New Home Sales At 12-Year Low

Purchases of new homes in the U.S. unexpectedly fell to a 12-year low in December, ending the worst sales year since records began in 1963.

Sales of new single-family homes in December 2007 were at a seasonally adjusted annual rate of 604,000, according to a report by the Commerce Department. This is 4.7 percent below the revised November rate of 634,000 and is 40.7 percent below the December 2006 estimate of 1.019 million.

This news prompted the National Association of Home Builders to press lawmakers into action over the country’s housing crisis.

“While the Administration and Congress are off to a good start in crafting an economic stimulus package to boost the ailing economy, the continuing deterioration in the housing market, as reflected in today’s numbers, underscores the need to do more to stabilize housing and the economy,” said Jerry Howard, executive vice president and CEO of the National Association of Home Builders (NAHB).

The median sales price of new houses sold in December 2007 was $219,200; the average sales price was $267,300. The seasonally adjusted estimate of new houses for sale at the end f December was 495,000. This represents a supply of 9.6 months at the current sales rate.

An estimated 774,000 new homes were sold in 2007, which is 26.4 percent below the 2006 figure of 1.051 million.

Regionally, new-home sales fell 6.5 percent in the South, 6 percent in the West and 1.2 percent in the Midwest. The Northeast posted a 6 percent gain. All regions were down substantially on a year-over-year basis, ranging from a 27.4 percent fall-off in the Northeast to a 55.8 percent drop in the Midwest.