The nation’s logjam of foreclosed homes, which will likely grow significantly in the next few months, is dashing hopes that the housing market could rebound quickly this year and helped fuel a tumble in home prices last month, according to industry data released yesterday.
Home sales fell more than expected, 3 percent in March compared with February, but not as quickly as in some previous months. But even as some analysts cling to early signs that sales could begin to stabilize later this year, there is growing concern that an excessive inventory of foreclosed homes could flood the market and suppress prices well into 2010.
After surging unexpectedly in February, home sales fell to a seasonally adjusted rate of 4.57 million units, according to the National Association of Realtors. That is down 7.1 percent compared with the same period a year ago.
Sales fell the most in the Northeast, 8 percent, which also saw the biggest dip in prices, but were unchanged in the Midwest and down 4 percent in the West. In the South, which includes the Washington area, sales fell 1.7 percent and prices dropped 12 percent.
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