While the US economy may be gaining steam, the housing recovery appears to have hit a roadblock

While the US economy may be gaining steam, the housing recovery appears to have hit a roadblock. Sales of new single-family homes dropped dramatically in March to 384,000 - down 14.5% from the prior month and 13.3% from March of 2013. The median sales price for March was $290,000, while the average price was $334,200. Most likely, consumer income levels are not keeping up with the pace of housing price increases, creating an affordability issue. However, banks are starting to offer more flexible loan types, such as 100% loans, which could help increase demand for new homes. Spring is traditionally a big buying season for new homes, so we'll see what the next couple months bring. (VIEW LINK)