March New Home Sales Tumble 14.5%

by Christopher Freeburn | April 23, 2014 12:24 pm

March New Home Sales Tumble 14.5%

On Wednesday, the Census Bureau said that sales of new single family homes[1] dropped sharply last month.

homeForSale March New Home Sales Tumble 14.5%[2]New 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.

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[3]) shares fell more than 3%, while Toll Brothers (TOL[4]) and  DR Horton (DHI[5]) shares each fell more than 2%.

More Housing News:

Endnotes:
  1. sales of new single family homes: http://www.usatoday.com/story/money/business/2014/04/23/march-new-home-sales/8043789/
  2. [Image]: http://investorplace.com/wp-content/uploads/2012/07/homeForSale.jpg
  3. RYL: http://studio-5.financialcontent.com/investplace/quote?Symbol=RYL
  4. TOL: http://studio-5.financialcontent.com/investplace/quote?Symbol=TOL
  5. DHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=DHI
  6. Existing Home Sales Hit 1-1/2 Year Low: http://investorplace.com/2014/04/existing-home-sales-hit-1-12-year-low/
  7. Z Stock: Zillow Taps Into an $11 Billion Real Estate Opportunity: http://investorplace.com/ipo-playbook/z-stock-real-estate/#.U1acJl5hOf0
  8. Can Real Estate Bounce Back This Spring?: http://investorplace.com/2014/03/real-estate-housing-market-q2/#.U1acWF5hOf0

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