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Your Morning Credit Crunch: Sales, Prices Plunge

Sure New York is a bulletproof market where nationwide housing turmoil has no affect on soaring prices and risk-free investment (cough), but you can't ignore bad news like this. Sales of new homes across the country plunged 8.3 percent in August, to the slowest pace in seven years. And the median price for a new home was down 7.5 percent from a year ago, the steepest drop in 37 years. The numbers, worse than predicted, have renewed fears that the worsening housing slump will spill over into the broader economy. For proof, look no further than Bridgehampton's Three Ponds Farm, which just underwent a whopping $7 million pricechop. Now it's only $68 million!
· Home Sales and Prices Fall Sharply [NYT]
· Sales of New Homes Plunge Most Since 1970 [NYSun]
· New-Home Sales Hit 7-Year Low [WSJ]