US new home sales fall 1.6 pct. in November

WASHINGTON (AP) — Sales of new U.S. homes fell in November, evidence that recent job gains have yet to boost the housing sector.

The Commerce Department said today that new home sales slid 1.6 percent last month to a seasonally adjusted annual rate of 438,000, the second straight monthly decline. October sales fell 2.2 percent to a downwardly revised rate of 445,000.

"Soft November new-home sales are consistent with what has been a slow and choppy recovery in the housing sector," said Jesse Hurwtiz, an analyst at the bank Barclays.

The construction market has been sluggish in 2014 and continues to lag the broader economic recovery that began more than five years ago. Just 399,000 new homes were bought in the first 11 months of the year, a slight 0.2 percent improvement from the same period in 2013.

New-home sales remain significantly below the annual rate of 700,000 seen during the 1990s.

Too many Americans lack the savings and solid credit records to upgrade to a newly built home. Or, they still owe more on their current mortgage than their home is worth.