Sales of US previously owned homes fell in March after jumping a month earlier by the most in more than five years, indicating the market will remain depressed for much of the year.

Purchases decreased 3 percent to an annual rate of 4.57 million, lower than forecast, from 4.71 million in February, the National Association of Realtors said yesterday in Washington.

The median price slumped 12 percent from a year ago and distressed properties accounted for about 50 percent of all sales.

Record-low mortgage rates and a foreclosure-driven plunge in prices are making houses more affordable, helping the market stabilize. Even so, mounting job losses are dimming prospects for an immediate recovery.