New home sales crawl back from all-time low

By Annalyn Censky, staff reporterApril 25, 2011: 10:17 AM ET

NEW YORK (CNNMoney) — New home sales started crawling back from an all-time low in March, according to government figures released Monday, but the housing market is still far from a recovery.

The Census Bureay reported an annual sales rate of 300,000 in March. While that was an 11% increase from February’s revised record low of 270.000, new home sales remained near the lowest levels ever recorded.

Compared to March of last year, the annual rate was down a staggering 21.9%.

Economists surveyed by Briefing.com were expecting a sales rate of 280,000 in March.

The report followed on the heels of slightly encouraging reports on existing home sales and new home construction and permits last week. Economists cautioned that one decent month of data doesn’t mean the housing market has turned around.

Housing supply still far outweighs supply, as foreclosed properties continue to flood the market. And while both prices and mortgage rates are at attractive lows, demand for mortgages remains weak.

Tuesday will bring the latest S&P/Case-Shiller home price index. Economists are expecting the report to show home prices fell 3.2% year-over-year in March.

Home prices are already hovering near their April 2009 lows, sparking fears that the housing market could be in for a double-dip decline.