US reported 1.5 percent decline in its new home purchase in the month of March. According to data released by the Commerce Department, new home sales for the month stood at 511,000, down from 519,000 in February.

The West proved to be the worst hit as the sales in the region plummeted 23.6 percent. It remained flat in the Northeast while South and Midwest reported a mild increase. The median price of new homes also declined 1.8 percent to $288,000 year-on-year. The housing market is currently characterized by a dearth of properties for sale.

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The inventory of new homes on the market in last month increased 2.1 percent to 246,000 units. This number is the highest since September 2009. At March's sale speed, the inventory would take 5.8 months to be liquidated, up from 5.6 months in February.

Despite disappointing data, the markets are still optimistic. Yahoo quoted Gregory Daco, head of US Macroeconomics at Oxford Economics, a forecasting outfit as, "While new home sales have lost some luster in recent months, we believe they will re-accelerate as we head into (the) spring season."

Improved job market and low mortgage rates are likely to provide a fillip to sagging home sales market. Current sales are slightly more robust than Y-o-Y data of 2015.

In sharp contrast, China, the second largest economy in the world, recently reported surge in its home sales number. China reported increase in new home prices in 62 cities during the month of March. The average new home price showed 0.85 percent increase in the same time period. Its new house construction jumped 19.2 percent in March.

TagsHousing Price, economic data, USA, china