New home sales hit slowest pace on record

From The Associated Press, Wednesday, August 25, 2010;

Sales of new homes dropped sharply last month to the slowest pace on record, the latest sign that the economic recovery is fading.The Commerce Department said Wednesday that new home sales fell 12.4 percent in July from a month earlier to a seasonally adjusted annual sales pace of 276,600. That was the slowest pace on records dating back to 1963. The past three months have been the worst on record for new home sales.

The weak housing numbers worried Wall Street, dragging the Dow Jones industrial average below 10,000 for a second day.

Weak home sales mean fewer jobs in the construction industry, which normally powers economic recoveries. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.

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