Big Drop in New-Home Sales

Peter Coy

An eye-popping drop in new-home sales announced today by the Census Bureau.

Sales fell 10.5% from January to February. That put them 13.4% where they were in February '05.

Don't blame it on the big snowstorm that hit the Northeast, giving New York's Central Park a record snowfall: sales actually rose in the Northeast.

Other bad signs for the market: The median price fell $4,000 from January to $230,400. And the inventory of unsold homes jumped from 5.3 months' worth at the current rate of sales to 6.3 months' worth.

Yipes.