The sales of new single-family homes in the United States dropped for a second consecutive month in November, signaling toward a fragile recovery in the housing market.
The US Commerce Department report, released on Tuesday, showed that the sales dropped 1.6 percent to a seasonally adjusted annual rate of 438,000 units.
The pace of sales recorded in October was revised down to 445,000 units from 458,000 units.
Several economists made forecast that the sales of new home rise to a 460,000-unit pace in November.
The new home sales account for nearly eight percent of the housing market of the country. The sales of new home tend to be volatile month to month. The sales were down 1.6 percent in comparison to November last year.
On Monday, a report showed that home re-sales dropped to a six-month low last month.
The country’s housing market is being shuffled by a slow pace of formation of the household, which was triggered by a result of sluggish wage growth.
Experts said that an acceleration in pace is expected in 2015 as a strengthening labor market fosters a greater pace of wage growth.
In November, the sales of new home dropped in the Midwest, the Northeast and the South. However, they increased 14.8 percent in the West.
Meanwhile, the stock of new homes that were available on the market increased 1.4 percent in November to 213,000, which is the highest since May 2010.