Banner Headline says New Home Sales Drop by Largest Amount since 1970 

New single-family U.S. home sales fell by an unexpectedly steep 8.5 percent in March and the median sales prices compared to a year ago dropped by the largest amount since 1970, a government report released this week showed. The pace of sales slowed to an annual rate of 526,000 last month, the weakest rate since October 1991, the Commerce Department said.

This may sound bad but it truly is not what it appears. If you look at the fact that builders have been building fewer new homes for some time it should not come as a suprise that they are selling fewer. You can’t sell something that doesn’t exist!

Dan Green from The Mortgage Reports wrote a much more detailed article which is available on his website.