New home sales plummet in August, prices tumble

In this July 25, 2008 file photo, a new home is for sale in a Little Rock, Ark., neighborhood. The Commerce Department said Thursday, Sept. 25, 2008, government data show sales of new homes dropped sharply in August, falling to the slowest pace in 17 years. The average sales price fell by the largest amount on record, too. (AP Photo/Danny Johnston, File)

The Commerce Department said Thursday that new homes sales fell by 11.5 percent in August to a seasonally adjusted annual sales rate of 460,000 units, the slowest sales pace since January 1991.