New home sales continue to struggle - KWWL - Eastern Iowa Breaking News, Weather, Closings

New home sales continue to struggle

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WASHINGTON, D.C. (KWWL) -

Sales of new homes fell to a six-month low in August.  The fourth straight monthly decline during the peak buying season suggests the housing market is years away from a recovery.

The US Commerce Department says new home sales fell 2.3 percent to a seasonally adjusted rate of 295,000.  That's less than half the roughly 700,000 that economists say must be sold to sustain a healthy housing market.

This year could be the worst for sales since the government began keeping records a half century ago.

New homes represent a fraction of home sales, but they have an outsize impact on the economy.  Each home built creates an average of three jobs and about $90,000 in taxes, according to the National Association of Home Builders.

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