New home sales plunged by 8.5% in the month of March, falling to a seasonally adjusted annual rate of 526,000. In February, the annualized rate was downwardly revised to 575,000 units, from 590,000. The index is at a 17-year low, and it is down 36.6% in the last year. The report gives little hope that the housing market is near a bottom.
Prices fell sharply as the supply of homes on the market continued to rise, the Commerce Department reported. The median price of a new home fell 13.3% in the past year, to $227,600, the largest decline in 38 years. Inventories fell for the 12th consecutive month, but due to a slower sales pace, the supply of homes on the market rose to 11 months. It's at its highest level in the last 27 years.
See Full Report.