New home sales drop 7 percent

MARTIN CRUTSINGER AP Economics Writer Published:

WASHINGTON -- U.S. sales of new homes slipped in December for a second consecutive month but even with the pause at the end of the year, sales for all of 2013 climbed to the highest level in five years.

The Commerce Department says sales of new homes dropped 7 percent in December to a seasonally adjusted annual rate of 414,000. In November, sales had fallen 3.9 percent.

For the whole year, sales were up 16.4 percent to 428,000, the highest level since 2008.

It marked the second year that sales have risen after six consecutive annual declines as the housing industry was rocked by the collapse of a housing bubble. Sales of new homes peaked at 1.28 million in 2005. Analysts expect further sales gains in 2014.

Want to leave your comments?

Sign in or Register to comment.