New-Home Sales Fall To Lowest Level in 12 Years

Washington, DC, December 28, 2007-- Sales of new homes plunged 9 percent in November to their lowest level in more than 12 years, according to the Commerce Department.

The Commerce Department said sales fell to a seasonally adjusted 647,000 annual rate. That was the worst showing since April 1995, when the pace of sales was 621,000.

The median sales price of a new home fell to $239,100 in November, 0.4 percent lower than a year ago.

Sales fell in all parts of the country, except for the West..

Sales dropped by 19.3 percent in the Northeast, but fell 27.6 percent in the Midwest and 6.4 percent in the South. However, sales increased by 4 percent in the West.

Over the last year, new-home sales nationwide have plunged by 34.4 percent.