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New-home sales hit all-time low in February

NAHB: 'Housing recovery is hesitating'

New-home sales dropped to an all-time low in February, falling an estimated 16.9 percent from January 2011 and sinking 28 percent compared to February 2010, to a seasonally adjusted annual rate of 250,000, the U.S. Census Bureau and Department of Housing and Urban Development reported today. The rate of single-family new-home sales in February was down 82 percent from a peak of 1.39 million, set in July 2005. The previous all-time low of 274,000, in records dating back to 1963, was set in August 2010. "February's sales numbers add to the mounting evidence that the housing recovery is hesitating along with the inconsistent progress of the economic recovery," said David Crowe, chief economist for the National Association of Home Builders, in a statement. The NAHB also noted that "even qualified buyers who are ready to make a purchase are facing frustrating challenges in terms of tight consumer lending conditions and inappropriately low appraisal values on new ...

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