More Bad News on Housing

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Shares of Los Angeles-area homebuilders slid Friday on news that U.S. new home sales had dropped last month to their lowest level in more than 12 years, rounding out a week of dour news for the housing industry.


The U.S. Commerce Department reported that new-home sales dropped 9 percent in November from the previous month to a seasonally-adjusted annual rate of 647,000 — the worst figure since April 1995. In addition, the new-home median sales price fell last month to $239,100, which was 0.4 percent lower than a year ago.

Shares of KB Home fell 95 cents, or 4 percent, to $21.14 in mid-day trading. Ryland was down 57 cents, or 2 percent, to $26.90.

Earlier, the Mortgage Bankers Association reported that mortgage application volume dropped 7.6 percent last week, while a Standard & Poor’s survey showed October home prices dropping by a record 6.7 percent from the same month a year ago.

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