U.S. home sales rise, but miss projections

The number of new single-family homes sold nationwide increased 1.5 percent in March from February and 18.5 percent compared with March 2012, according to a new report.

The annualized sales rate was 417,000 homes in March, according to the U.S. Department of Housing and Urban Development, which is 2,000 less than analysts had predicted.

Analysts say the low supply of homes, tight credit and supply chain constraints in residential construction likely held down sales. Additionally, the median home price dropped 6.8 percent in March from February. Compared with March 2012, prices are 3 percent higher, which represents a slower rate of price growth than that seen in the second half of last year.

In Connecticut, the number of sales that were closed during the first quarter of 2013 decreased 25 percent compared with the fourth quarter of 2012, according to a Prudential Connecticut Realty market report. Authors of the report said the first quarter of last year was also weak and was followed by several strong quarters.

The median price of a single-family home among the Connecticut sales also decreased 9.1 percent in the first quarter of 2013 from the previous quarter, but it was 1.1 percent higher compared with the first quarter of 2012.