New home sales plunge to 12-year low

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Sales of new homes dove last month to their lowest level in more than 12 years.

The Commerce Department reported Friday that new-home sales dropped 9 percent from October to November to a seasonally adjusted annual rate of 647,000 – the worst showing since April 1995, when the rate was 621,000.

The median sales price of a new home dipped to $239,100 in November. That is 0.4 percent lower than a year ago. The median price is where half sell for more and half for less.

Sales fell in all parts of the country, except for the West, where they rose.

New-home sales dropped 19.3 percent in the Northeast, plunged 27.6 percent in the Midwest and fell 6.4 percent in the South.

But, sales increased by 4 percent in the West.