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New Home Sales Plummet 11.2%, Erase All '09 Gains

Drop surprises analysts, wipes out recent gains

By Kevin Spak, Newser Staff

Posted Feb 24, 2010 9:48 AM CST

(Newser) – New home sales took a stunning plunge in January, dropping 11.2% to a new record low, wiping out all the gains the housing market had made over the past year. The figure blindsided analysts, who had expected a 3.8% increase, according to a Wall Street Journal poll. The plunge came despite a 2.4% drop in the median price.

“The foreclosure flow is robbing demand from the new-homes market,” one analyst tells Bloomberg. “The new-homes market just can’t get off the floor. If new homes suffer, construction suffers and jobs suffer.” January marked the third straight month sales have fallen, after rising steadily for most of last year. The drop was big enough to render those gains moot; January sales were down 6.1% year-over-year.

A new D.R. Horton home for sale in Miami Gardens, Fla., is shown Monday, Feb. 1, 2010. (AP Photo/Alan Diaz)

In this photo made Tuesday, Nov. 17, 2009, a 'for sale' sign is seen outside a home in Los Angeles. (AP Photo/Reed Saxon)

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COMMENTS

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Showing 3 of 15 comments

Derni

Feb 24, 2010 7:03 PM CST

Fear of job loss-the pink slip!! Wages stay stgnant...and Banks make it more difficult to get a loan even if your credit is good-but they got money from the stimulus package..

Ucantusethatname

Feb 24, 2010 5:29 PM CST

The stimulus is working! The stimulus is working!

Toon

Feb 24, 2010 4:49 PM CST

In the long term housing is tied to wages. we need more jobs but we also need to return to the type of income distribution we had in the 1950's. Back then a larger share of the wealth created went to the middle class. Now too much goes to the top few percent.

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New Home Sales Plummet 11.2%, Erase All '09 Gains

Drop surprises analysts, wipes out recent gains

OTHER STORIES ON OUR RADAR

housing market • economic indicators • new home sales • foreclosures

MOST POPULAR STORIES

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More Newser Stories

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

'Squatter' Who Claimed McMansion Gets the Boot

Texan's 'adverse possession' argument rejected

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Finally, Sun Through the Economic Clouds

Thanks to improving housing market, private debt: Paul Krugman

Bank Grabs OJ Simpson's Miami Home

JPMorgan Chase forecloses on 4 bedroom, 4 bath house

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New Home Sales Plummet 11.2%, Erase All '09 Gains

Drop surprises analysts, wipes out recent gains

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OTHER STORIES ON OUR RADAR

housing market • economic indicators • new home sales • foreclosures

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

'Squatter' Who Claimed McMansion Gets the Boot

Texan's 'adverse possession' argument rejected

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Finally, Sun Through the Economic Clouds

Thanks to improving housing market, private debt: Paul Krugman

Bank Grabs OJ Simpson's Miami Home

JPMorgan Chase forecloses on 4 bedroom, 4 bath house

About Us

Site

Newser By Users

Community

Site Maps

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More News

What is Newser?