New home sales pick up pace in March

New-home sales hit a record low in February, although figures were revised upward for the first two months of the year. February’s sales were revised upward to 270,000 from 250,000, a 13.5 percent drop from January to February. 

Economists say sales must be around a 700,000-a-year pace to reflect a healthy sector.

New-home sales have battled to recover as millions of distressed homes, including foreclosures, have flooded the market and as buyers have been cautious about making a purchase into this year. 

Meanwhile, the median sales price for a new home sold in March was $213,800, up 2.9 percent from $207,700 in February but 4.9 percent below the same month last year, according to the Commerce-HUD report. 

The estimate of new houses for sale at the end of March was 183,000, the lowest monthly amount in about 44 years. The number represents a 7.3 month supply at the current sales rate, above the six-month supply considered a healthy level by economists. 

Sales also were up in three out of four regions, with a 66.7 percent increase last month in the Northeast, a 25.9 percent jump in the West and a 12.9 percent increase in the Midwest. Sales dropped slightly, by 0.6 percent, in the South.