New home sales drop 25 percent

October 20, 2008 12:51PM

The rate of existing home sales has remained flat since the beginning of
the year, while sales of new homes have gone down 25 percent, according to the National Association of Realtors. The shift toward
sales of older homes isn’t surprising as builders have been cutting back the
supply of new homes on the market, while foreclosures have boosted the supply
of older properties for sale. Economists expect sales of existing homes to fall
1 percent between August and the end of the year.


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