Commerce Department report shows 12 year low in new home sales.

Adding fuel to the fire for the argument that the red hot housing market has begun to slow to a simmer, November’s numbers for the sale of new homes in the United States fell to a twelve year low.

Although analysts had been expecting a drop in the 8.7% range, the results released by the Commerce Department show a decline of 11.3% below October’s record high numbers.  In terms of new single-family dwellings, this amounts to the sale of approximately 1.25 million homes for the month of November.

Despite the dip in sales for new homes, the overall housing market was remarkably good in 2005, with record highs in sales for both new and existing homes.  These strong numbers are expected to decline by around 6% in the new year, amounting to a slowing of the housing boom, but analysts are predicting continued market strength in 2006.

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