New-Home Sales Decline 9.9% in August
(September 28, 2005) -- Sales of new homes fell a surprising
9.9 percent in August to a seasonally adjusted annual rate
of 1.24 million units, marking the largest decline since a
10-percent plunge in November 2004.
The August decline, reported by the U.S. Commerce Department,
was more than double what analysts had been expecting. It
also shows the median home sales price jumped 2.5 percent
from the previous month to $220,300sending a mixed signal
on whether the housing market is slowing.
Earlier this week the NATIONAL ASSOCIATION OF REALTORS®
reported that housing resale activity rose 2 percent last
month to 7.29 million units, which is the second-highest rate
Rising mortgage rates finally may be affecting the housing
market, according to some economists. Nonetheless, they still
expect 2005 to be the fifth consecutive year in which a record
number of new and previously owned homes are sold.
Source: Washington Post (09/28/05); Crutsinger, Martin
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