New Home Sales Hit Three-Year Low

Sales of new homes fell in February to the lowest level in nearly three years, but analysts said the latest sign of economic slowdown exaggerated weakness in the housing industry.

“The new home sales numbers are correct and they are incorrect,” economist John A. Tuccillo of the National Association of Realtors said Wednesday. “They are correct in direction … but don’t believe the magnitude.”

The Commerce Department report showed sales declined throughout the country, including the steepest plunge in the West in more than 13 years.

Overall, sales plummeted 14 percent to a seasonally adjusted annual rate of 551,000, smallest since 546,000 in April 1992. The drop was the largest since a 22 percent decline in January 1994.

Regionally, sales in the West plunged 28.5 percent, to a 118,000 annual rate, the steepest decline since a 31 percent plunge in January 1982.