Sales of existing homes increased 2.9 percent last month to a seasonally adjusted annual rate of 5.03 million units, up from 4.89 million in January, according to a report from the National Association of Realtors.
However, the increase in sales is still 23.8 percent below the 6.60 million-unit rate in February of last year and likely doesn’t indicate significant recovery or a bottom.
“We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” said Lawrence Yun, NAR chief economist.
“Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year.”
The median existing-home price for all housing types was $195,000 last month, a 8.2 percent decline from a year earlier when it averaged $213,500.
NAR said the fall could be attributed to a slowdown in sales in high-cost areas, dragging down the national median as a result, but noted that rapid price declines have begun luring in buyers.
Existing-home sales surged 11.3 percent in the Northeast to an annual pace of 890,000 units, 26.4 percent below levels a year ago as the median price climbed 0.4 percent to $264,800.
In the Midwest, sales climbed 2.5 percent to a level of 1.24 million units, 19.5 percent below year-ago levels as the median home price fell 8.6 percent to $163,400.
Existing-home sales increased 2.1 percent to an annual rate of 1.99 million in the South, down 22 percent from a year ago as the median price slumped 8.6 percent to $163,400.
But the West fared the worst, seeing sales slip 1.1 percent to an annual rate of 920,000, 29.2 percent lower than a year ago as the median price fell 13.4 percent to $290.400.
Total housing inventory fell 3.0 percent last month to 4.03 million existing homes available for sale, a 9.6-month supply at the current sales pace, down from a 10.2-month supply in January.
(photo: shortfatkid)
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