New Home Sales Fall to 1991 Levels

Washington, DC, Nov. 26, 2008--Sales of new homes fell an estimated 5.3% in October to a seasonally adjusted annual rate of 433,000, the lowest level since 1991, the Commerce Department reported Wednesday.

Economists surveyed by MarketWatch had expected a result of 441,500. Sales fell 6% in the South, hitting the lowest level since 1992. Sales declined 18% in West, hitting the lowest level since 1982.

Nationally, sales in October were down 40.1% compared with October 2007. The inventory of unsold homes fell a record 8% in October to 381,000. In the past year, inventories have fallen 25.7%, the biggest drop since the government began tracking the data in 1963. The median sales price was $218,000, down 7% in the past year.