Sales of new homes plunge to record low

http://www.msnbc.msn.com/id/42230083/ns/business-eye_on_the_economy/

WASHINGTON — Sales of new homes plunged in February to the fewest in records dating back nearly half a century, a dismal sign for an already-weak housing market.

The Commerce Department says new-home sales fell 16.9 percent last month to a seasonally adjusted annual rate of 250,000 homes. It's the third straight monthly decline and far below the 700,000-a-year pace that economists view as healthy.
Story: New homes become a bad deal in weak markets

The median price of a new home dropped nearly 14 percent to $202,100, the lowest since December 2003. New home prices are now 30 percent higher than of those being resold.

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.