Purchases of new homes in the U.S. unexpectedly declined in March for a third month, reflecting the weakest pace of demand in the West since July 2014.
Figures released Monday by the U.S. Commerce Department show total sales waned 1.5% to a 511,000 annualized pace. The median forecast was for a gain to 520,000. In western states, demand slumped 23.6%.
Economists’ estimates for new-home sales ranged from 488,000 to 540,000. February purchases were revised to 519,000 from 512,000.
The monthly data are generally volatile, one reason economists prefer to look at longer-term trends.
The report said there was 90% confidence the change in sales last month ranged from a 13.5% drop to a 16.5% spike.
Sales in the western states declined to a 107,000 annualized rate in March after surging 21.7% the previous month to 140,000. In the south, purchases climbed 5% to a 314,000 pace in March, the strongest in 13 months. Sales in the Midwest advanced 18.5%, the first gain in three months, and were unchanged in the northeast.
The median sales price decreased 1.8% from March 2015 to $288,000 U.S.
