November new home sales sink 11 percent
Dec 23, 10:23 AM (ET)
By ALAN ZIBEL
WASHINGTON (AP) - Sales of new homes plunged unexpectedly last month to the lowest level since April, a sign the housing market recovery will be rocky.
The report reflects a slump in demand following the extension of a deadline for first-time buyers to qualify for a tax credit. The incentive was set to expire at the end of November, but Congress pushed back the date to April 30 and expanded the program to include current homeowners who relocate.
"Buyer traffic is likely to be flat until spring," predicted Mark Vitner, senior economist with Wells Fargo Securities.
First-time buyers will still be able to save up to $8,000, and homeowners who have lived in their current properties for at least five years can now claim a tax credit of up to $6,500. To qualify, buyers must ink a deal by the end of April and complete the transaction by the end of June.
The Commerce Department said Wednesday that November's sales fell 11 percent to a seasonally adjusted annual rate of 355,000 from a downwardly revised 400,000 in October. Economists surveyed by Thomson Reuters had expected a pace of 440,000. Sales were down 9 percent from a year ago.
My Way News - November new home sales sink 11 percent
Dec 23, 10:23 AM (ET)
By ALAN ZIBEL
WASHINGTON (AP) - Sales of new homes plunged unexpectedly last month to the lowest level since April, a sign the housing market recovery will be rocky.
The report reflects a slump in demand following the extension of a deadline for first-time buyers to qualify for a tax credit. The incentive was set to expire at the end of November, but Congress pushed back the date to April 30 and expanded the program to include current homeowners who relocate.
"Buyer traffic is likely to be flat until spring," predicted Mark Vitner, senior economist with Wells Fargo Securities.
First-time buyers will still be able to save up to $8,000, and homeowners who have lived in their current properties for at least five years can now claim a tax credit of up to $6,500. To qualify, buyers must ink a deal by the end of April and complete the transaction by the end of June.
The Commerce Department said Wednesday that November's sales fell 11 percent to a seasonally adjusted annual rate of 355,000 from a downwardly revised 400,000 in October. Economists surveyed by Thomson Reuters had expected a pace of 440,000. Sales were down 9 percent from a year ago.
My Way News - November new home sales sink 11 percent