This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New-Home Sales Crumble

Sales of new homes reached a nearly 13-year low in December, falling 4.7% from November and almost 41% from the year-ago period.

The Census Bureau said Monday that sales of new single-family homes in December were at a seasonally adjusted annual rate of 604,000 units, compared with a downwardly revised 634,000 in November. In December 2006, home sales were at a rate of 1.02 million units.

The December data were well worse than economists' expectation for a selling rate of 645,000 homes, based on data from Reuters. The figures marked the lowest sales pace since February 1995.

Prices also slid, with the median home price reaching $219,200 in December. In November, the median price of a new house was $239,100.

Housing Gloom Opens Door for Bigger Rate Cut

The seasonally adjusted estimate of new houses for sale at the end of the month was 495,000 homes, representing 9.6 months of supply at the current sales pace. That marks the highest level of months' supply in all of 2007.

For all of 2007, an estimated 774,000 homes were sold, a 26.4% drop from the 1.05 million new homes sold in 2006.

Homebuilder stocks -- which saw big gains last week after the Federal Reserve cut interest rates -- were sliding on the report. Lennar (LEN - Get Report) was down 59 cents, or 3.5%, to $16.39; D.R. Horton (DHI - Get Report) dropped 62 cents, or 4%, to $14.81; and KB Home (KBH - Get Report) fell $1.33, or 5.6%, to $22.32.

Toll Brothers (TOL) was sliding $1.14, or 5.3%, to $20.32, and Centex (CTX) lost 89 cents, or 3.4%, to $25.49.
This article was written by a staff member of TheStreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
DHI $27.17 -0.69%
KBH $16.57 -0.18%
LEN $50.63 -0.80%
AAPL $126.25 0.66%
FB $86.71 1.10%

Markets

DOW 17,706.46 +86.95 0.49%
S&P 500 2,070.04 +6.93 0.34%
NASDAQ 4,996.0090 +9.1420 0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs