New-home sales fell 1 percent in June

AP News
Posted: Jul 26, 2011 10:10 AM
New-home sales fell 1 percent in June

Fewer people bought new homes in June, evidence that the housing market remains weak.

The Commerce Department says sales of new homes fell 1 percent in June to an annual rate of 312,000. That's less than half the 700,000 homes sold per year that economists say is typical in healthy markets.

Sales fell to record lows in the Northeast and West. The median price of a new home rose to $235,200 in June, up 5.8 percent from May.

Housing remains the weakest part of the U.S. economy. Last year was the worst for new-home sales on records dating back a half century. Through the first six months of this year, sales are lagging behind last year's totals.