Sales of New Homes Flat in March

Washington, DC, April 24, 2009--Sales of new homes were nearly unchanged in March, the Commerce Department reported Friday.

In addition, it said, sales in the first two months of the year were stronger than initially reported.

Sales fell 0.6% in March to a seasonally adjusted annual rate of 356,000 from 358,000 in February. February's sales pace was revised higher from 337,000 reported a month ago. January's sales pace was revised from 322,000 to 331,000, the low for the cycle.

Builders continued to cut prices in March, and have reduced their inventories of unsold homes by a record amount in the past year. But the time it takes to sell a home rose to record high of 10.2 months, the government said.

Builders are facing the worst market conditions in a half century. Record numbers of foreclosures of existing homes are forcing prices lower. Buyers are struggling with higher standards to obtain a loan, massive job losses and the real possibility that they can save thousands of dollars by waiting to buy.
Sales are down 30.6% in the past year.

The median sales price of a new home fell to $201,400 in March, down 12.2% in the past year.

The inventory of unsold homes fell 5.2% in March to 311,000, down a record 33.7% in the past year. The inventory represents a 10.7 month supply at the March sales pace.

Government statisticians have low confidence in the monthly report, which is subject to large revisions and large sampling and other statistical errors. In most months, the government isn't sure whether sales rose or fell.