Global Biz
US new home sales drop 3.6% in Sept
(Xinhua)
Updated: 2009-10-29 01:49
WASHINGTON: US new home sales dropped unexpectedly in September as the government's tax credit for first-time home buyers is about to expire, according to official data released Wednesday.
The Commerce Department said sales decreased 3.6 percent to a seasonally adjusted annual rate of 402,000 from the downwardly revised 417,000 in August, and slumped 7.8 percent from a year ago.
The September data were much lower than most economists' forecast of 440,000 units. It was also the first decline since March.
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Analysts said the housing market remained fragile, with the country's unemployment rate staying high and consumers reluctant to spend.
With the 8,000-dollar tax credit program for first-time home buyers to expire on November 30, home builders and economists are worried that house selling will plunge after the deadline, further hurting the recession-wracked real estate market.
The US Congress is considering extending the tax credit through March 2010 and gradually phasing it out over the rest of next year.
