New home sales decline 26 percent

Washington (AP) — The Commerce Department says new home sales fell by a record amount in 2007, with prices under pressure.

Sales of new homes fell 26.4 percent last year. The median price of a new home rose just 0.2 percent to $246,900, the poorest showing since 1991.

The report underscores the difficulty of the housing downturn, which has sent shockwaves through the broader economy and financial markets. Some analysts think a recession has begun.

For December, the government says new home sales fell 4.7 percent to a seasonally adjusted annual rate of 604,000.