In March, sales of new homes plummeted to the lowest level seen since the housing recession of the 1990s, the government said on Thursday. Inventories rose to the highest point in more than a quarter century.

According to the New York Times, buyers vanished from the housing market last month at a swift rate. Sales of new homes fell 8.5 percent, a far sharper decline than economists had forecast.”

After adjusting to seasonal factors, sales are running at an annual rate of 526,000, the lowest point since October 1991. The Commerce Department lowered its initial estimate for February sales as well, to a 5.3 percent decline from 1.8 percent.

If the current sales rate holds up, it will take 11 months for builders to work off the current backlog, the biggest inventory run-up since 1981. The Northeast suffered the steepest drop.

In March, the median price of a new home dropped to $227,600 down 13.3 percent from a year ago.

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