The New York Times is reporting that sales of new homes fell by 26% last year. This is the biggest drop since the US government began keeping records in 1963.
Prices are also declining. The December median new home price declined 10.9% from a year ago, to $219,200. For the full year, new homes did manage to squeak out a 0.2 gain.
Despite the declines in prices, supply continues to far outweigh demand. The current backlog of new homes is 9.6 months, per The Commerce Department.
