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Wednesday, October 26, 2011

"New home sales tick up as builders slash prices" by Derek Kravitz, AP real estate writer.

WASHINGTON (AP) – Oct. 26, 2011 – Sales of new U.S. homes rose in September after four straight monthly declines, largely because builders cut their prices.

The Commerce Department says sales rose 5.7 percent last month to a seasonally adjusted annual rate of 313,000 homes. Still, that’s less than half the 700,000 economists say must be sold to sustain a healthy housing market.

The median sales price of a new home fell 3.1 percent to $204,400 – the lowest since October 2010. The number of new homes on the market was unchanged at 163,000, a record low.

Sales of new homes fell for four straight months before September and hit a six-month low in August. This year could be the worst year for sales since the government began keeping records a half century ago.

Copyright © 2011 The Associated Press, Derek Kravitz, AP real estate writer.

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