Existing-Home Sales Top Forecasts

In the Northeast, existing-home sales rose 2.6% from a year ago, and the median price grew 5% year over year to $275,000.

Sales in the Midwest increased 3.8% over a year ago, and the median existing-home price rose 2.6% to $160,000.

In the South, sales rose 1.5% from a year ago. The median price in the South was $181,000, up 6.5% from March 2005.

Homebuilder shares were down Tuesday after the report, with Pulte Homes (PHM Quote) shedding 3.1% to $38.12 and Toll Brothers (TOL Quote) dropping 1.8% to $32.87.

Investors also were reacting to a first-quarter earnings miss from M/I Homes (MHO Quote), which reported a 2% drop in net income. The homebuilder reported EPS of $1.14, below Thomson First Call's mean analyst estimate of $1.45.

The company said it was experiencing pricing pressures and higher cancellations in the Washington, D.C. area, and that conditions remain "challenging" in Columbus, Ohio, Indianapolis and Cincinnati. The stock fell 6.3% to $43.20 in morning trading.