US new home sales drop 8.5 percent in March

WASHINGTON - Sales of new US homes fell 8.5 percent in March from the prior month, as prices tumbled in response to a glut of unsold homes, Commerce Department figures showed Thursday.

By (AFP)

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Published: Thu 24 Apr 2008, 8:55 PM

Last updated: Tue 10 Jan 2023, 10:38 AM

The seasonally adjusted annual pace of 526,000 units for the month was well below analysts' consensus forecast was for a rate of 580,000.

The March sales pace was the weakest since 1991 and 36.6 percent below the March 2007 estimate of 830,000. The department also revised downward the February rate to 575,000, from a prior estimate of 590,000.

The median sales price of new houses sold in March 2008 was down 13.3 percent year-over-year at 227,600 dollars. The average sales price was 292,200.

The glut of new houses for sale at the end of March was estimated at 468,000 on a seasonally adjusted basis. That represents an 11-month supply at the current sales rate, the department said.

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