Sales of new homes continue decline

Sales of new homes in the United States fell for the second month in a row. The Commerce Department reported today that sales of new single-family homes fell by 3.9 percent in February, marking the slowest sales pace in almost seven years. In January, there was a month-to-month drop of 15.8 percent in new-home sales, the biggest single-month decline in 15 years. Analysts say the data shows that the country’s weakened housing market will continue to stay depressed in the short term. The drop in new home sales follows news last week that sales of existing homes in the U.S. had risen. Real estate experts did not greet that report as a sign the housing market was rebounding, however, citing continued concerns about subprime mortgages. more [AP via NYT]