US government figures show that sales of newly built US single-family homes fell unexpectedly in December. The Commerce Department figures provide the latest indication that the government-led housing recovery may be losing some steam.
Sales fell 7.6% to a 342,000 unit annual rate from an upwardly revised 370,000 in November. It was the second straight month that new home sales declined. Analysts had expected an increase.
New home sales for the whole of 2009 fell 22.9% to a record low 374,000 units, the department said.
The housing market recovery is showing some signs of fatigue after a surge in sales as first-time buyers rushed to take advantage of a popular tax credit, which had been scheduled to expire in November.
It has since been expanded and extended until June this year. While analysts expect home sales to pick up as a result, they reckon the pace will not be as strong as witnessed with the initial tax credit.
Despite the slump in sales there were a few bright spots in Wednesday's report. The median sale price for a new home rose 5.2% last month from November to $221,300, the highest in seven months and the biggest rise since April 2009. Compared to December 2008, the median sale price fell 3.6%.
