Sales of New U.S. Homes Decline to End First Year of Rebound

Purchases of new U.S. homes unexpectedly dropped in December, indicating the U.S. housing rebound will take time to develop after the industry completed its first year of recovery. Sales declined 7.3 percent to a 369,000 annual pace following a 398,000 rate in November that was higher than previously estimated and the strongest in more than two years, Commerce Department figures showed today in Washington. The median estimate of 77 economists surveyed by Bloomberg called for sales to reach 385,000 last month.