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

Crucial metric scores biggest jump in 47 years

(AP) - Sales of new homes surged 27% last month, bouncing off the previous month's record low and blowing past expectations as better weather and government incentives boosted sales. In all, new home sales rose to a seasonally adjusted annual pace of 411,000 in March, the biggest monthly jump in 47 years, according to the Commerce Department. Economists had expected a more modest increase to 330,000. More»

(NEWSER) - New home sales jumped 11% in June, the biggest gain in eight years, the Commerce Department announced today, as the supply fell to its lowest level in more than a decade. With mortgage rates and prices staggeringly low—the median home price fell 12%—buyers came out of the woodwork. Sales increased to a 384,000 annual pace, topping estimates, which had ranged from 335,000 to 377,000, Bloomberg reports. More»

(NEWSER) - Foreclosures and other vacant homes make this a tough time to be a builder, the Wall Street Journal reports. Consider Pulte Homes, which is selling a new, four-bedroom home in Las Vegas for $214,990—while a short sale nearby offers a similar Pulte-built home for $149,999. “We are no longer competing with other builders,” said one KB Home exec. “We are competing with foreclosures.” More»

Orders for business equipment key larger-than-expected drop

(NEWSER) - Durable goods took an unexpected tumble in February, the Commerce Department announced today, with a 1.7% drop headlining a raft of bad economic news. Analysts expected a 0.8% increase. “Businesses definitely have shown they are beginning to retrench,” one analyst told Bloomberg. “Demand is weakening.” New-home sales, meanwhile, fell 1.8% to a 13-year low, despite a median-price drop to $244,100. More»

New 'mortgage to lease' program kicks off in test markets

(NEWSER) - Falling behind on your Bank of America mortgage? Well, what would you say if the bank offered to take your house, but let you rent it for a while? That's the idea behind a new "Mortgage to Lease" pilot program that BofA is rolling out in select markets in Arizona, Nevada, and New York. Participants will hand the title of their home over to the bank, which will forgive their outstanding debt and lease it to them for up to three years at or below market rates, the AP explains. More»