New-Home Sales Hit Lowest Level Since '91

8.5% drop much worse than expected; supply hits 27-year high
By Kevin Spak,  Newser Staff
Posted Apr 24, 2008 10:53 AM CDT
New homes are shown for sale by KB Home builders in the Sylmar section of Los Angeles Friday, March 28, 2008.   (AP Photo/Nick Ut)
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(Newser) – New-home sales fell yet again in March, the Wall Street Journal reports, with single-family sales off 8.5% to an annual rate of 526,000, the lowest level since 1991. Analysts had expected a drop of only 1.9%. The median price, meanwhile, plummeted 13.3%, to $227,600. With an 11-month supply of homes available—the most since 1981—prices will likely continue to fall.