Sales of new homes in the U.S. fell in March to the slowest pace in 16 1/2 years. The median price of a new home in March compared to a year ago fell at the fastest fall in 38 years.
Sales of new homes dropped by 8.5% last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991, the Commerce Department reported. The median price of a home sold in March dropped by 13.3% compared with March 2007, the biggest year-over-year price decline since a 14.6% plunge in July 1970.
In addition, orders to factories for big-ticket manufactured goods fell for a third straight month in March. The Commerce Department said demand for durable goods dropped by 0.3% last month.