Sales of new homes in the US plunged unexpectedly in November, official figures indicated, as buyers favored distressed and foreclosed properties.
New home sales dropped 11.3% to an adjusted annual rate of 355000, commerce department figures indicated. That was the lowest level for seven months and defied expectations of a rise. Compared with a year ago, sales of new homes are down by 9%.
The data show how sales of existing homes, which rose last month, have come at the expense of new homes sales. The figures also indicated that the first-time homebuyer tax credit would expire in November. It has subsequently been extended into next year.