Surprising most forecasters, sales of newly built single family homes in the U.S. fell in December, according to data released by the U.S. Commerce Department.
Real estate analysts had predicted an increase in new home sales in December, so the drop is particularly discouraging for builders and Realtors and others who depend on the real estate market for their income.
The Commerce Department said new home sales fell 7.6% to a 342,000 annual rate from an upwardly revised 370,000 units in November 2009.
U.S. stock indexes begain falling as the new home sales data was released.
New home sales for all of 2009 fell 22.9% to a record low 374,000 units.
Analysts had expected a housing market resurgence due to continued low mortgage rates and the influence of the federal tax credit for homebuyers, which has been extended to April 30 and now includes move-up buyers who currently own a home.
The initial first-time homebuyers tax credit caused a surge in both new home and existing sales before it ended in November, but both new home and existing home sales dropped in December. Home sales traditionally fall during December because of the holidays, and this year there was the added disturbance of extremely cold and stormy weather in many parts of the country.
The Commerce Department report did have a bright spot, with the median sale price for a new single family home up by 5.2% in December to $221,300, the highest in seven months and the biggest increase in price since April 2009. Compared with Decemeber 2008, though, the median sales price for a single family home was down by 3.6%.
Written by Michele Lerner
HULIQ.com
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