24 Dec 2009

New home sales fall in US

8:31 am on 24 December 2009

Sales of new homes in the United States plunged in November.

The Commerce Department said sales fell by 11.3% to a seasonally-adjusted annual rate of 355,000 homes, down from a revised 400,000 in October.

The BBC reports the fall reflects an extension of first-time buyer tax credits, which had been due to expire in November. The total was far lower than analysts had expected.

Home sales had been boosted by buyers looking to take advantage of the tax credit, but analysts say the incentive to buy has disappeared, now that they have been extended to April.

The median sales price for November was $US217,000.