New US home sales at near-worst level

WASHINGTON — Sales of new homes had their second-worst month on record in August, signalling that the housing market will remain a drag on the US economy.

By (AP)

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Published: Sat 25 Sep 2010, 11:19 PM

Last updated: Mon 6 Apr 2015, 11:53 AM

Last month’s new home sales were unchanged from a month earlier at a seasonally adjusted annual sales pace of 288,000, the Commerce Department said on Friday. Sales were down by 29 per cent from the same month a year earlier.

Normally the building industry powers economic recoveries. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders. But housing has been at the centre of this downturn and it shows no signs of recovering quickly.

The only time new home sales were slower was in May, when the sales pace was 282,000. That’s the worst pace on records dating back to 1963. July’s results had been the worst on record, but were adjusted upward.

High unemployment, tight credit and uncertainty about home prices have kept people from buying homes. —



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