27 Sep 2011

Sales of new houses continue to fall

10:14 am on 27 September 2011

Sales of new homes in the United States fell for the fourth consecutive month in August.

The Commerce Department said sales fell 2.3% in August to a seasonally adjusted annual rate of 295,000.

The BBC reports the new figures represent a six-month low. High unemployment and a weak housing market are undermining the US recovery.

An oversupply of used homes and a large stock of foreclosed housing is also putting a strain on the market.

The BBC reports new homes represent less than a fifth of the housing market, but have a large impact on the economy.

According to the National Association of Home Builders, each new building creates an average of three jobs and $US90,000 in taxes.

Meanwhile, July's sales figure was upgraded to an annual rate of 302,000 units from the previously reported 298,000.