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US New Home Sales Slide To 17-Year Low; Prospects Dim
4-24-08 10:15 AM EDT
By Brian Blackstone
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- U.S. new-home sales slid further in March to their lowest level since 1991 while the supply of homes for sale soared to nearly a three-decade high, suggesting little prospect of any near-term turnaround.
Sales of single-family homes slumped 8.5% last month to a seasonally adjusted annual rate of 526,000, the Commerce Department said Thursday. That's the lowest level since October 1991. Economists had expected a much smaller drop of 1.9%, according to a Dow Jones Newswires survey.
February new-home sales fell 5.3% to an annual rate to 575,000. Originally, the government said February sales dropped by only 1.8% to 590,000.
Year over year, new-home sales were down 36.6%.
Other recent data confirm the headwinds the housing sector faces. Earlier this week, the National Association of Realtors said sales of pre-owned homes fell 2% in March. Prospects for a recovery in the broader economy are closely tied to housing, given its effect on construction, employment and consumer spending. With housing still under pressure, Federal Reserve officials are likely to lower official interest rates again when they meet next week.
The median price of a new home decreased by 13.3% to $227,600 in March from the previous year, according to Thursday's report. The average price tumbled by 11.3% to $292,200 from a year earlier.
Regionally last month, new-home sales decreased 12.5% in the Midwest and 19.4% in the Northeast. Sales fell 4.6% in the South and 12.9% in the West.
The month's supply of homes for sale rose last month to 11 months, the highest since September 1981.
-By Brian Blackstone; Dow Jones Newswires; 202-828-3397; brian.blackstone@ dowjones.com
4-24-08 10:15 AM EDT
By Brian Blackstone
Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- U.S. new-home sales slid further in March to their lowest level since 1991 while the supply of homes for sale soared to nearly a three-decade high, suggesting little prospect of any near-term turnaround.
Sales of single-family homes slumped 8.5% last month to a seasonally adjusted annual rate of 526,000, the Commerce Department said Thursday. That's the lowest level since October 1991. Economists had expected a much smaller drop of 1.9%, according to a Dow Jones Newswires survey.
February new-home sales fell 5.3% to an annual rate to 575,000. Originally, the government said February sales dropped by only 1.8% to 590,000.
Year over year, new-home sales were down 36.6%.
Other recent data confirm the headwinds the housing sector faces. Earlier this week, the National Association of Realtors said sales of pre-owned homes fell 2% in March. Prospects for a recovery in the broader economy are closely tied to housing, given its effect on construction, employment and consumer spending. With housing still under pressure, Federal Reserve officials are likely to lower official interest rates again when they meet next week.
The median price of a new home decreased by 13.3% to $227,600 in March from the previous year, according to Thursday's report. The average price tumbled by 11.3% to $292,200 from a year earlier.
Regionally last month, new-home sales decreased 12.5% in the Midwest and 19.4% in the Northeast. Sales fell 4.6% in the South and 12.9% in the West.
The month's supply of homes for sale rose last month to 11 months, the highest since September 1981.
-By Brian Blackstone; Dow Jones Newswires; 202-828-3397; brian.blackstone@ dowjones.com
