U.S. New-Home Sales Plunged in February

U.S. new-home sales plunged in February by the largest amount in nearly nine years, while the median price of a new home dropped for the fourth-straight month - providing fresh evidence that the once-booming housing market is cooling off.

The drop in new home sales followed news Thursday that sales of previously owned homes actually rose by a stronger-than-expected 5.2 per cent last month following five straight monthly declines.

Analysts said the trend in both reports pointed to a slowing housing market after five record-setting years.

The slowdown in the U.S. housing market could spill over into Canada and reduce shipments of lumber sold to the U.S. homebuilding industry.