March New Home Sales Tumble 14.5%

But the median new home price jumped 13% over last year


On Wednesday, the Census Bureau said that sales of new single family homes dropped sharply last month.

home for sale new home salesNew home sales in March fell to a seasonally-adjusted annual pace of 384,000 units. That was far below the annual rate of 450,000 units forecast by economists and a 14.5% drop from the revised annual rate of 449,000 units seen in February, USA TODAY notes.

Homebuilder and Home Construction ETFs Continue to Falter
Homebuilder and Home Construction ETFs Continue to Falter

The government also said that the median price of a new home rose to $290,000, up 13% over the same time last year.

During March, new home sales sank 21.5% in the Midwest, compared to February. New home sales fell 16.7% in the West and 14.4% in southern states.

However, despite harsh winter weather, new home sales climbed 12.5% in Northeastern states.

Homebuilder stocks fell after the release of the new home sales data. Ryland Group (RYL) shares fell more than 3%, while Toll Brothers (TOL) and  DR Horton (DHI) shares each fell more than 2%.

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