US March new home sales fall to more than 16-year low

0 Comments | AFP, April, 2008

WASHINGTON (AFP) — Sales of new US homes plunged to their lowest level in over 16 years in March despite hefty price declines in response to a glut of unsold homes, Commerce Department data showed Thursday.

The grim monthly report follows a key industry survey this week showing sales of existing homes, the largest sector of the market, slid further in March, deepening the worst housing sector slump in decades.

Most analysts say the market has not yet reached bottom after the collapse of a boom market two years ago that has weakened the economy and cost banks billions of dollars in mortgage-related losses.

The Commerce Department reported March new home sales fell 8.5 percent to a seasonally adjusted annual pace of 526,000 units, well below analysts'...