New Home Sales Plunge in the U.S.; Record Declines in the Northeast

Sales of new homes in the U.S. have slumped to the lowest level in almost a year, dropping 11.5 percent this month. The northeast saw a record percentage decline of 61.8 percent. Sales were also down 8.3 percent in the midwest and 8.7 percent in the South. Americans' demand for newly built homes seems to have topped off as turbulence in the financial markets and increasing construction prices seem to have deterred new buyers. The median price for a new home has now risen to $296,900, a 13.5 percent jump from last year's numbers. Homebuilder shares took a hit after the latest data was released. The number of properties on the market has also decreased, dropping 2.6 percent.