It was bound to happen soon…
Posted by RichardMar 24
The pace of existing home sales in the United States rose in February to a 5.03 million-unit annual rate while prices took a record fall, the National Association of Realators said in a report on Monday that painted a mixed picture for the housing market.
While February broke a six-month streak of decreasing home sales, it also saw an 8.2 percent decline in median home prices from a year ago. That drop to $195,900 was the sharpest since the trade group began keeping records in 1968.
Economists polled by Reuters were expecting home resales to fall to a 4.85 million-unit pace from the 4.89 million-unit rate for January, which remained unrevised.
The U.S. dollar rose and U.S. Treasury prices extended their drop to session lows after the stronger-than-expected data.
Lawrence Yun, NAR chief economist, said the home price decline probably spurred sales in some regions.
“Falling prices increase affordability but at the same time there is a psychological element of buyers who are sitting on the fence while prices drop,” he said.
The inventory of homes for sale fell 3 percent to 4.03 million units at the end of February, which represents a 9.6 months’ supply at the current sales pace.
Only the West saw sales decrease, with sales down 1.1 percent, while the other regions saw sales rise. Home sales were up 11.3 percent in the Northeast, 2.5 percent in the Midwest and 2.1 percent in the South.








