New Home Sales Fall to 13-Year Low

Washington, DC, February 27, 2008--Sales of new single-family homes fell 2.8 percent in January to a seasonally adjusted annual rate of 588,000, the lowest number since February 1995, the Commerce Department said Wednesday.

December new-home sales fell 4.0 percent to an annual rate to 605,000; originally, the government said December sales fell by 4.7 percent to 604,000. Sales declined 13.1 percent  in November.

Year over year, new-home sales were 33.9 percent lower than the level in January 2007.

The median price of a new home fell by 15.1 percent to $216,000 in January from $254,400 in January 2007. The average price decreased by 12.1 percent to $276,600 from $314,600 a year ago.

Inventories fell to an estimated 482,000 homes for sale at the end of January, down from December's 493,000.