New home prices took their biggest hit in more than 35 years in September, the government said Thursday, the latest sign that builders are struggling to unload a glut of unsold homes as the nation's real estate market cools.
The lower prices may have worked, as the annual pace of new home sales climbed 5.3 percent to 1.08 million last month, according to the Census Bureau report. Economists surveyed by Briefing.com had forecast a reading of 1.05 million, which would have been flat with the initial August reading.
But the median price of a new home tumbled 9.7 percent from a year earlier to $217,100. It was the sharpest drop since December 1970, when prices posted an 11.2 percent decline, and was the fourth largest year-over-year decline on record. |CNN|
Now I guess we get to see if all those dire predictions about the effects of this were on the money. Personally, I love a surprise.
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