Existing Home Sales, Prices Decline

Existing-home sales fell 0.6 percent in February to a rate of 5.02 million units from 5.05 million in January, but they were 7.0 percent higher than the 4.69 million sold a year ago, NAR reported this morning.

The national median sale price of existing homes was $165,100 in February, a 1.8 percent decline from a year ago. Housing inventory rose 9.5 percent to 3.59 million homes, which represents an 8.6-month supply at the current sales pace, up from a 7.8-month supply in January.

First-time homebuyers accounted for 42 percent of all home transactions in February, NAR reports. Distressed homes — typically short sales and foreclosures that sell for a discount — accounted for 35 percent of all sales last month, while investors accounted for 19 percent of transactions.

NAR chief economist Lawrence Yun says stormy winter weather in February had a negative impact on the market. “Some closings were simply postponed by winter storms, but buyers couldn’t get out to look at homes in some areas, and that should negatively impact near-term contract activity.”

Yun notes that year-over-year sales have been higher for eight straight months, and prices are more stable than they have been over the past few years. But, he says, “the housing recovery is fragile at the moment.”

Regionally, existing-home sales data was mixed. Sales in the Northeast rose 2.4 percent to an annual pace of 840,000 in February and were 12.0 percent above a year ago. The median price rose 7.5 percent from February 2009.

In the Midwest, sales increased 2.8 percent in February to a level of 1.11 million and were 8.8 percent higher than February 2009. But the median price fell 2.0 percent below a year ago.

In the South, existing-home sales fell 1.1 percent to an annual pace of 1.85 million in February but were 6.9 percent above a year ago. The median price declined 4.2 percent from February 2009.

Existing-home sales in the West fell 4.7 percent to an annual rate of 1.22 million in February but were 3.4 percent higher than February 2009. The median price declined 9.8 percent from a year ago. Tue, Mar 23, 2010

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