However, sales for the first quarter 2006 were down 9.7 percent from the fourth quarter of 2005, and year-to-date sales were down 8.2 percent from the year before.

?EUR??,,????'??While we were expecting a slight rebound in sales from the pace reported by the government for February, we definitely are seeing demand taper off from the highs of last year as interest rates inch up and affordability becomes a more overriding factor,?EUR??,,????'?? said National Association of Home Builders (NAHB) President David Pressly.

Wednesday?EUR??,,????'???s report on new home sales comes on the heels of a report released Tuesday that showed rise in sales of existing homes in March.

According to the Commerce Department figures, new-home sales rose to a seasonally adjusted annual rate of 1.213 million units in March. However, the sales pace was 1.159 million units for the first quarter as a whole, down from 1.283 million units for the last quarter of 2005 and down from 1.249 million units for the first quarter of last year.

?EUR??,,????'??Month-to-month changes in the new-home sales series are notoriously volatile, but the quarterly pattern of sales is reasonably in keeping with other housing indicators, including NAHB?EUR??,,????'???s surveys of single-family builders,?EUR??,,????'?? said NAHB Chief Economist David Seiders.

All four regions across the country posted increased sales of new homes in March. Sales were up in Northeast by 4.7 percent, the Midwest by 10.9 percent, the South by 6.9 percent and in the West by 35.7 percent. However, the first-quarter average was below the final quarter of 2005 in all regions.