New Home Sales Tumble -- Again
New home sales dropped precipitously in October, very nearly tying for the worst month of sales in 2010. Home sales fell 8.1 percent to 283,000 units in October, down from 308,000 the previous month, the Commerce Department reported on Wednesday.
The worst month in 2010 was August, when new home sales plummeted to 275,000 units in response to the end of the up-to-$8,000 homebuyer tax credit. The best month of sales in 2010 was April with 414,000 units, when the tax credit officially came to an end.
The poor sales of new homes were coupled by a considerable drop in the median home price, which fell nearly 13.9 percent to $194,900 from $226,300 the previous month.
