Sales of new homes skyrocketed in March. Sales of existing homes, not so much.

March was a good month for sales of new homes but not such a good month for sales of existing homes.

New home sales in the country hit a 16-month high, increasing by 4.5 percent to an annualized pace of 692,000, according to Bloomberg. The median sales price dropped 9.7 percent year over year to hit $302,700, a two-year low.

The market’s strength indicates that lower mortgage rates, higher wages and a pause on borrowing costs from the Federal Reserve could be helping the housing sector, although other parts of it remain weak.

Sales of previously owned homes in March, for instance, dropped 4.9 percent compared to February, dropping to an annual rate of 5.21 million. The median sales price rose 3.8 percent year over year to $259,400. [Bloomberg] – Eddie Small