2007 May Have Been Worst Housing Period in Almost 50 Years

Washington, D.C.–Figures released Monday by the Commerce Department indicate 2007 may have been the housing industry’s worst year in nearly half a century, the New York Times says.New home sales dropped by 26 percent in 2007–the sharpest decline since recordkeeping began in 1963.In December alone, new home sales fell 4.7 percent to a 604,000 annual rate. The December sales rate is the lowest since 1995.As buyers wait for bigger bargains and homebuilders just wait, demand has greatly declined; even buyer incentives have failed to ignite the market, which saw its housing supply increase to 9.6 months in December.New home sales were lower in most regions–especially in the South and West.The Commerce Department also revised its new home sale tally for November, dropping the amount from an original estimate of 647,000 to a 634,000 annual pace.