U.S. new home sales dip 2.2 % in December

Sales of new single-family houses in the United States dropped in December, and median sales price continued to fall, indicating the struggling housing market, reported the U.S. Commerce Department on Thursday. Sales of new single-family houses in December were at a seasonally adjusted annual rate of 307,000 units, down 2.2 percent from the revised November rate of 314,000 units, and 7.3 percent below the December 2010 estimate of 331,000 units, said the department. The median sales price of new houses sold in December declined to 210,300 U.S. dollars, lower than the reading of 215,700 in November. About 302,000 new homes were sold in 2011, 6.2 percent below the 2010 figure of 323,000. The tumble of new home sales is in contrast with the uptrend in existing home sales, which rose in December for a third consecutive month. The U.S. housing industry is suffering its worst slump in decades. Experts hold that the home price downturn, large inventory of foreclosured houses and a persisting credit crunch have been a major drag on the property sector as well as the overall economic recovery.