New Home Sales Sets Record

Sales of newly built homes sank last year at the steepest pace since record keeping began in 1963 - and home builders expect their worst recession in decades to persist until at least the middle of this year.

New home sales totaled 774,000 in 2007, off a staggering 26% from 2006. The median price was nearly flat at $246,900. Since peaking in July 2005, new home sales have plunged nearly 57%, and construction permits have fallen to half the level they were then.

For December 2007, adjusted annual rate, of 604,000 homes sold - down 41% from last December.
Prices are down 10%, to $219,200.

The National Association of Home Builders says about 4% of builders were guaranteeing home values, 58% were offering price cuts, more than half were paying some buyers closing costs and 61% were offering free upgrades, according to its November survey of about 400 builders nationwide.