New Home Sales Dive To Lowest Level In Nearly 50 Years

As housing prices sank to their lowest levels since 2002 in February, the number of new houses sold took a much harder fall, dropping 16.9 percent from the previous month.

In an AP story, the Commerce Department says sales fell to a seasonally adjusted annual rate of 250,000 homes, making for the third consecutive monthly drop. The glut of foreclosures has led to masses of unfilled homes, driving prices down and giving prospective buyers little reason to build new houses.

The lack of new home sales hurts the already staggered construction industry, and an analyst says further price declines will continue to help clear inventory.

New-home sales fell 16.9% [AP via AZCentral]