New Home Sales Plunge 11.2 Percent; Prices Down 7.5 Percent

New home sales fell in January by 11.2%, this is the continuation of the trend of declines over the last six months. During this span only one month has shown growth in new home sales, while five have shown decline. From last January sales dropped 6%, this is the worst drop in home sales in 47 years. While the sales of homes continues to plummet prices of homes rose by 4.5% since last January. It seems that since the housing bubble burst people are not confident in buying new homes, that coupled with prices of new homes going up is discouraging buyers. Hopefully in the next few months we will see some growth in the sale of homes.