New-Home Sales at Slowest Pace Since '95

New-homes sales fell 2.8% in January 2007 to the slowest pace since 1995 as builders continued to complete construction on 190,000 homes a month. The U.S. Census Bureau reported that sales of new single-family homes fell from a seasonally adjusted annual rate of 605,000 in December to 588,000 in January. The National Association of Home Builders estimates that new-home sales will average 600,000 in the first quarter. The government report indicates that builder inventories have declined by 10% since Jan. 2007, while they have completed construction on 190,000 homes for the past five months. In January, builders were trying to sell 482,000 vacant homes, which is a 9.9-month supply at the current sales pace.