Business

New home sales fell in August for 4th month

Monday, September 26, 2011

Sales of new homes fell to a six-month low in August. The fourth straight monthly decline during the peak buying season suggests the housing market is years away from a recovery.

The Commerce Department says new-home sales fell 2.3 percent to a seasonally adjusted annual rate of 295,000. That's less than half the roughly 700,000 that economists say must be sold to sustain a healthy housing market.

This year could be the worst for sales since the government began keeping records a half century ago.

New homes represent a fraction of home sales, but they have an outsize impact on the economy. Each home built creates an average of three jobs and about $90,000 in taxes, according to the National Association of Home Builders.

(Copyright ©2014 by The Associated Press. All Rights Reserved.)

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