U.S. November New-Home Sales Probably Fell to Near 11-Year Low

[marmar]

from Bloomberg:



U.S. November New-Home Sales Probably Fell to Near 11-Year Low

By Bob Willis

Dec. 28 (Bloomberg) -- Sales of new homes in the U.S. fell in November, approaching an 11-year low and signaling no end to the housing recession that's threatening to stall growth in 2008, economists said before a report today.

Purchases fell to an annual pace of 717,000, according to the median forecast in a Bloomberg News survey of 68 economists, from 728,000 in October. The 716,000 pace reached in September was the lowest since 1996.

The residential real-estate slump, already the deepest in 16 years, shows no sign of ending as discounts fail to lure buyers and mounting foreclosures swell the glut of unsold properties. Falling property values may cause consumer spending to cool, boosting the odds the expansion will come to an end.

``The housing recession continues to grind away,'' said Brian Bethune, U.S. economist at Global Insight Inc. in Lexington, Massachusetts. ``Imbalances in the housing market overall are being exacerbated by a rising number of homes being reverted to the market due to foreclosures.'' ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aFnbiogDmxI4&refer=home

[OhioChick]

1. Color Me Surprised.......Not. n/t