September 25, 2009

WASHINGTON, D.C. – Sales of new U.S. homes climbed in August to the highest level in almost a year. Sales increased 0.7 percent to a 429,000 annual pace according to figures from the US Commerce Department. Other reports showed orders for durable goods unexpectedly fell and consumer sentiment climbed.
Prices, however, were down as builders cut prices at a record pace to compete with the foreclosures that are flooding the market for previously owned houses.
Sales figures also continued to benefit from the first-time home buyers tax credit, which is set to expire in November.
Last month’s pace was the highest since September 2008.
The median price of new homes fell 9.5 percent from July – the biggest decrease since records began in 1963 – as homes selling for less than $150,000 took a bigger share of the market.
The median price in August decreased to $195,200, the lowest level since October 2003 and down 12 percent from August 2008. Sales of new homes were 3.4 percent lower than a year earlier.