International
Sales of new US homes sunk in November to their lowest level in more than 12 years
By Finfacts Team
Dec 28, 2007, 17:19

January 2000 to November 2007 Full scale chart

Sales of new US homes sunk in November to their lowest level in more than 12 years, confirming the grim outlook for the US housing market.

The US Commerce Department said on Friday that new-home sales plunged by 9% in November from October to a seasonally adjusted annual rate of 647,000.

That was the worst performance since April 1995, when the sales were 621,000.

On Thursday, it was reported that demand for US durable goods, products that are expected to last at least three years, inched slightly up in November.

Orders for durable goods increased by 0.1% to a seasonally adjusted $214.67 billion, the Commerce Department said.

A key barometer of US business equipment spending -- orders for nondefense capital goods excluding aircraft - - fell by 0.4% last month, after a decline of 2.9% in October.

November shipments for nondefense capital goods excluding aircraft rose by 0.2%, after falling 1.2% in October.

Holiday e-commerce sales in the US have grown at the lowest rate since data has been compiled for the sector.

The sales growth of 19% compares with rates of 25% to 30% advances in recent years.

American consumers are expected to spend around $29.5 billion at Internet shops, according to projections published by comScore, a market research firm. "The growth rates for previous years were clearly much higher," said Andrew Lipsman, spokesman for comScore. The research firm did not have growth rates before 2003, but Lipsman suspected that they were 25% or more.