by Christopher Freeburn | April 23, 2014 12:24 pm
On Wednesday, the Census Bureau said that sales of new single family homes dropped sharply last month.
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) shares fell more than 3%, while Toll Brothers (TOL) and DR Horton (DHI) shares each fell more than 2%.
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