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Sales of new American homes plunged in February to the fewest on records dating back nearly half a century, a dismal sign for an already-weak housing market.* r. {( c. H& {/ x o
8 K; m" X1 g: g L7 |8 ?The Commerce Department said Wednesday new home sales fell 16.9 per cent last month to a seasonally adjusted annual rate of 250,000 homes. It's the third straight monthly decline and far below the 700,000-a-year pace that economists view as healthy.
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The median price of a new home dropped nearly 14 per cent to $202,100, the lowest since December 2003. New home prices are now 30 percent higher than of those being resold.
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/ b. W, u l+ q8 QBuilders have struggled to compete with a wave of foreclosures that has lowered the price of previously occupied homes. High unemployment, tight credit and uncertainty over prices have also kept many potential buyers from making purchases. |
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