U.S. new home sales lowest level in 7 years

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    BEIJING, Sept. 28 (Xinhuanet) -- Sales of new homes in America plunged by 8.3 percent in August from July to the lowest level in seven years, a grim indication of the continuing credit crunch.
    The Commerce Department reported a seasonal adjusted annual rate of 795,000 units, the lowest level since June 2000, when 793,000 new homes sold.
    The home sales report came on the same day that the government reported a relatively brisk business growth rate in revised figures for the second quarter. But the 3.8 percent pace was less than previously estimated and it occurred before the credit crisis and its repercussions across the broad spectrum of the economy had taken hold.
    The median sales price in August fell by 7.5 percent from a year earlier to 225,700 U.S. dollars. That was the biggest drop in percentage terms in nearly 37 years. The median price is the middle point at which half sell for more and half for less. The average sales price dropped by 8 percent in August from a year earlier to 292,000 dollars,the largest drop in 17 years.
    Sales fell in the South and the West in August compared with July. Sales, however, rose in the Northeast and Midwest.
    The new-homes sales report, combined with other recent economic reports showing a sharp drop in demand for big-ticket manufactured goods in August, suggested the economy lost momentum as it headed into the fall.
    Another report issued by Commerce showed the economy staged a rebound in the spring before a credit crisis raised new fears about longer-term business health.
    The economy's 3.8 percent growth rate in the April-to-June quarter was the strongest showing in just over a year. Although the new reading for the second quarter was slightly less robust than a previous estimate of a 4 percent growth rate, it nonetheless marked a substantial improvement over the feeble 0.6 percent growth rate registered in the prior quarter.
    (Agencies)
               
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