Sales of new homes surged in April by the biggest amount in 14 years. However, the median price of a new home dropped by the largest amount on record. These mixed signals left no clear picture of whether the worst of the nation's housing slump is over.
A 16.2 percent increase in new homes sales has been reported by the Commerce Department. The median price fell a record 11.1 percent decline from the previous month. The big price decline indicated that builders are slashing prices in an effort to move a huge overhang of unsold homes.
A recent steep slump in housing continues to weigh on the economy's performance. Analysts are hoping that spending by consumers and businesses will be able to overcome the weakness in housing and keep the county out of a recession.
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