Housing market continues to struggle as sales drop 35.3% in a year

New home sales at the US hit their lowest level for 17 years in November, the BBC has reported.

Sales of new houses were down 2.9% from October, according to US Commerce Department figures. Predictions for property sales in the period were gloomy, but figures fell below economists' expectations.

Overall home sales in November were down 35.3% from November 2007. The mid-price of a new home also dropped the biggest amount in eight months, down 11.5% from a year ago.

Housebuilders in the US have attempted to reduce production of new homes, in order to keep in step with rapidly falling demand. The US housing slump is expected to continue well into next year.

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