US

New-homes sales rose 1.5 percent in March to annual rate of 417,000

U.S. sales of new homes rebounded in March to the second fastest sales pace in three years, adding to evidence of a sustained housing recovery at the start of the spring buying season.

The Commerce Department says sales of new homes increased 1.5 percent in March to a seasonally adjusted annual rate of 417,000. Sales had reached a pace of 445,000 in January.

New-home sales are still below the 700,000 pace considered healthy by most economists. But they have risen 18.5 percent from a year ago. The median price of a new home was $247,000 in March, up 3 percent from a year ago.