New-home sales sink to the lowest level on record

"Sales of new homes fell in February to the lowest level on records dating back nearly half a century, a dismal sign for an already weak housing market," according to an Associated Press story in The New York Times.

Among the dismal findings:

"New-home sales fell 16.9 percent last month to a seasonally adjusted annual rate of 250,000 homes, the Commerce Department said Wednesday. It is the third consecutive monthly decline and far below the 700,000-a-year pace that economists view as healthy.

"The median price of a new home dropped nearly 14 percent to $202,100, the lowest since December 2003." 

"Builders have struggled to compete with a wave of foreclosures that has lowered the price of previously occupied homes. High unemployment, tight credit and uncertainty over prices have also kept many potential buyers from making purchases."

"Last year was the fifth consecutive year of declines for new-home sales after they reached record highs during the housing boom. Economists say it could take years before sales return to a healthy pace."