New Home Sales

Not good.

Dec. 28 (Bloomberg) -- Sales of new homes in the U.S. fell to a 12-year low in November, portending bigger declines in construction that will hobble economic growth throughout 2008.

Purchases dropped 9 percent to an annual pace of 647,000 that was weaker than the lowest forecast, the Commerce Department said today in Washington. October sales were revised down to a 711,000 pace.

...

A Bloomberg survey of 68 economists forecast sales would fall to an annual pace of 717,000 from a previously reported 728,000 rate in October, according to the median estimate. Economists' forecasts ranged from a low of 685,000 to a high of 750,000.


...
The number of homes for sale at the end of November decreased 1.8 percent to 505,000, the fewest in two years. Still, because sales dropped even more, the inventory of unsold homes at the current sales pace jumped to 9.3 months from 8.8 months in October.