New-Home Sales at Slowest Pace Since 1991

WASHINGTON -- Sales of new homes fell in October to the lowest point in nearly 18 years while the median price of a new home dropped to the lowest level since 2004.

The Commerce Department says new-home sales decreased 5.3% last month to a seasonally adjusted annual sales pace of 433,000 homes, the lowest level since January 1991, another period when the country was undergoing a steep housing downturn.

The median price of a new home sold in October fell to $218,000, down 7% from a year ago. It was the lowest median sales price since September 2004.