The volume of new home sales in the U.S. plunged in the second month of the year with single-family home sales reaching a record low as prices dropped, signaling the housing market recovery is continuing to struggle to gain traction, according to Reuters. On Wednesday, the Commerce Department reported that new home sales in the U.S. fell 16.9% in February from the previous month to a seasonally adjusted rate of 250,000, which is the lowest since records began in 1963. Economists had anticipated a slight increase from Januarys level, and the fall sent new home sales down 28% year-over-year.
Meanwhile, the median sales price for a new home shed 13.9% in February to reach $202,100, which is the lowest mark since December 2003. The fall brought the year-over-year decline in new home prices to 8.9%, and the supply of new homes on the market rose to 8.9 months worth, marking the highest level since August. Kurt Karl of Swiss Re said the months data was disappointing, and warned, There are now signs of a turnaround. The latest report comes on the heels of existing home sales data that also showed a steep drop in February.