Source:
Wall Street JournalNew-home sales resumed falling in May and the big jump in demand the month before was revised lower, while the median price of a home compared to a year earlier dropped.
Meanwhile, U.S. consumer confidence fell in June to its weakest reading since August, with both the present situation and expectations components declining, according to a report released Tuesday.
Sales of single-family homes decreased by 1.6% to a seasonally adjusted annual rate of 915,000, the Commerce Department said Tuesday. April new-home sales rose 13% to an annual rate to 930,000; originally, the government said April sales rose 16% to 981,000.
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Builders are losing confidence. They broke ground in May at a lower rate than the month before; government data showed May housing starts fell 2.1%, the first drop in four months. The lifeless housing market has reduced economic growth for six consecutive quarters, and a bulging supply of unsold homes suggest further drag. Another thorn in the side of the industry is the subprime loan market mess. Lenders have tightened credit -- and might do so further amid evidence that the outlook for securities backed by the riskiest subprime loans made last year has deteriorated.
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http://online.wsj.com/article/SB118286428657448435.html?mod=home_whats_news_us
Included in the subscription-only story... Year-over-year drop of 16% in new home sales from May of 2006.