Sales of Existing US Homes Plummet In February
Sales of previously owned homes in the US declined more-than-expected in February as prices reached nine-year lows, a sign analysts say indicates just how far off a recovery in the nation's housing sector is. The National Association of Realtors said that sales of existing homes fell 9.6 percent from January to a seasonally adjusted annual pace of 4.88 million units, bringing to an end three months of gains in the data.
Economists who had participated in a Reuters poll had projected sales would fall 4 percent, on average, to a 5.15 million pace. The median home price for February, meanwhile, was $156,100, down 5.2 percent from the year prior and the lowest reported since April 2002. NAR chief economist Lawrence Yun commented that if price declines continue it would severely hinder the ongoing recovery in the housing market.
Sales across the nation, the agency said, were down 2.8 percent from February a year ago. Oversupply of homes and a relentless wave of foreclosures continue to keep downward pressure on prices hindering a recovery in the sector that was at the heart of the 2008 financial collapse. Distressed properties accounted for 39 percent of all transactions in February, up from 37 percent in January. All-cash deals, meanwhile, accounted for 33 percent of all sales, a record-high.
Sales declined in February in every sector, with sales falling 10 percent in both the single-family home sector and multi-family sector. At February's pace, it would take 8.6 months to exhaust the nation's inventory of unsold homes, up from 7.5 months in January. A supply of between six and seven months is considered to be indicative of a healthy housing market.
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