New-home sales log another record in 2005

December increase defied economists' expectation of a decline

New-home sales for all of 2005 climbed to an all-time high, marking the fifth year in a row of record sales.

The Commerce Department reported Friday that sales of new single-family homes clocked in at 1.28 million units last year, representing a 6.6 percent increase over last year�s 1.20 million units, the previous all-time high.

Sales of new homes as well as existing homes � the biggest chunk of the housing market � have logged records five years running.

In December, new-home sales rose 2.9 percent from November�s pace � defying analysts� expectations for sales to go down last month.

The roaring housing market has helped to underpin consumer spending and bolster overall economic growth. Looking ahead, economists expect the housing market will slow this year, and there have been increasing signs that the market is starting to lose steam.

The National Association of Realtors, in a report Wednesday, said that sales of existing homes fell by 5.7 percent in December, marking the third straight monthly decline � something that had not occurred since early 2002.

For all of 2005, however, existing-home sales hit a record high of 7.072 million units, up 4.2 percent from 2004.