Wednesday, April 23, 2014

New Home Sales Fall To Slowest Pace in 8 Months

New home sales sharply declined to an annual pace of 384,000 units in March. It’s the slowest pace in 8 months and 22.5% below February’s revised rate. March’s pace is 13.3% below year ago levels. Despite March’s headline index positively revising February’s rate, new home sales fell by 9.8% in the first quarter.

Sales fell in three of the four regions surveyed. The Northeast was the exception, rising 12.5%. The Midwest, South and West declined respectively by 21.5%, 14.4% and 16.7%. Sales declined in all four regions from year-ago levels.

The supply of new homes on the market has grown, hitting 6.0 months of supply. It’s the greatest supply level in over two years, signaling a return to normalcy.

Read the Census release.

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