New Home Sales Rose 1.6%, but 2011 Likely Worst Ever
Americans bought slightly more new homes in November, but 2011 will likely end up as the worst year for sales in history.
The Commerce Department said new-home sales rose 1.6 percent last month to a seasonally adjusted annual rate of 315,000. That's less than half the 700,000 new homes that economists said should be sold to sustain a healthy housing market.
It's also below the 323,000 homes sold last year — the worst year for sales on records dating back to 1963.
New homes account for just a fraction of the housing market, but they have a big impact on the economy. Each new home built creates roughly three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders.