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| Version 1 | Version 2 |
|---|---|
| US home sales fall at record pace | US home sales fall at record pace |
| (about 1 hour later) | |
| Sales of new US homes fell at a record pace in 2007, figures from the US Commerce Department have shown. | Sales of new US homes fell at a record pace in 2007, figures from the US Commerce Department have shown. |
| The number of new homes sold sank 26.4% to 774,000, which beat the previous record fall of 23.1% set in 1980. | The number of new homes sold sank 26.4% to 774,000, which beat the previous record fall of 23.1% set in 1980. |
| The report also showed that new home sales in December fell 40.7% from the same month in 2006 to a seasonally adjusted annual rate of 604,000. | The report also showed that new home sales in December fell 40.7% from the same month in 2006 to a seasonally adjusted annual rate of 604,000. |
| The weakness in the US housing sector has led some analysts to fear that the economy is heading for a recession. | The weakness in the US housing sector has led some analysts to fear that the economy is heading for a recession. |
| "It's a pretty big drop and it clearly shows the housing market continues to deteriorate," said Kurt Karl, chief US economist with Swiss Re. | "It's a pretty big drop and it clearly shows the housing market continues to deteriorate," said Kurt Karl, chief US economist with Swiss Re. |
| "Supply is building up and there's no indication demand will catch up anytime soon." | "Supply is building up and there's no indication demand will catch up anytime soon." |
| Worse to come? | |
| The median price of a new home last year was almost the same level as in 2006, up only 0.2% at $246,900. | |
| But analysts said the US housing market could slow further. | |
| Many analysts have predicted that prices will continue to fall in 2008 as builders struggle to sell a glut of new properties. | |
| At current sales prices, it would take 9.6 months to clear the inventory of unsold homes, the longest stretch in more than two decades. | |
| The worry is that falling home prices and higher mortgage repayment costs will lead to an increase in home repossessions. | |
| This in turn could constrain US consumer spending, which in turn could cause the US economy to contract. |