New Homes Sales Slowest in Over 16 Years

Washington, DC, April 24, 2008--Sales of new homes fell in March to the lowest level in more than 16 years as the housing industry slumped further at the start of the spring sales season.

The median price of a new home compared to a year ago fell by the largest amount in nearly four decades.

The Commerce Department reported Thursday that sales of new homes dropped by 8.5 percent in March to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991.

The median price of a home sold dropped by 13.3 percent compared to March 2007, the biggest year-over-year price decline since a 14.6 percent plunge in July 1970.