Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades. The Commerce Department reported today that new home sales dropped 11.2% last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half-century. The big drop was a surprise to economists who had expected sales would rebound to an annual rate of 360,000 units. The January decline may heighten fears about the fledgling recovery in housing. Economists are already worried that the improvement in sales in the second half of last year will fizzle out as various governmental support programs are withdrawn.
U.S. new home sales hit record low in January ?
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