Thursday, October 29, 2009

Surprise drop in new home sales

Posted by:- Anshu Dixit
By Ben Rooney, staff reporter

NEW YORK ( -- Sales of newly built homes fell unexpectedly in September after rising for five straight months, according to government figures released Wednesday.

The Commerce Department said new home sales fell 3.6% to a seasonally-adjusted annual rate of 402,000 last month, from a downwardly revised rate of 417,000 in August. It was the first time new home sales declined since March.

Economists surveyed by had expected September new home sales to rise to a rate of 440,000 units.

"We're attributing most of the decline to the potential expiration of the new home-buyer tax credit," said Adam York, an economist at Wells Fargo. "It's getting harder to buy a house and no one wants to close after the credit expires," he added.

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1 comment:

  1. I am kind of confuse, because some studies are showing that housing prices are dropping and some are showing it is getting better.By- Anshu Dixit