U.S. Existing Home Sales Pull Back Much More Than Expected In February
U.S. Existing Home Sales Pull Back Much More Than Expected In February
After reaching their highest annual rate in six months in January, existing home sales in the U.S. pulled back by much more than expected in the month of February, the National Association of Realtors revealed in a report on Monday.
NAR said existing home sales tumbled 7.1 percent to an annual rate of 5.08 million in February from 5.47 million in January. Economists had expected sales to show a more modest decrease to a rate of 5.31 million.
Despite the steep monthly decline, the report noted that existing home sales were up by 2.2 percent compared to the same month a year ago.
NAR chief economist Lawrence Yun said, "The lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings."
"However, the main issue continues to be a supply and affordability problem," he added. "Finding the right property at an affordable price is burdening many potential buyers."
The report said the median existing home price for all housing types was $210,800 in February, down 1.4 percent from $213,700 in January but up 4.4 percent from $201,900 a year ago.
NAR also said there were 1.88 million existing homes available for sale at the end of February, reflecting a 3.3 percent increase from 1.82 million at the end of January. Inventory is still down 1.1 percent year-over-year.
The unsold inventory in February represents 4.4 months of supply at the current sales pace compared to 4.0 months in January.
Single-family home sales slumped 7.2 percent to an annual rate of 4.51 million, while existing condominium and co-op sales fell 6.6 percent to an annual rate of 570,000.
Wednesday morning, the Commerce Department is scheduled to release a separate report on new home sales in the month of February.
New home sales are expected to rise to an annual rate of 510,000 in February after tumbling to a rate of 494,000 in January.
The material has been provided by InstaForex Company - www.instaforex.com
