Home Sales in U.S. Soar to a Record High in Feb.

The nationwide pace of home sales soared to record high levels in February as a robust economy, low mortgage rates and mild winter weather across most of the country contributed to a spike in sales activity, figures released Wednesday showed.

February sales of existing single-family homes rose 8.7% from the previous month, to a seasonally adjusted, annualized rate of 4.75 million properties, according to the National Assn. of Realtors.

Sales rose in every region of the country, pushing the February rate to the highest level in the nearly 30 years the trade group has tracked home sales.

“Most markets are performing at a fairly high level, with standout performances in places like [California’s] Silicon Valley and Boston,” said David Hensley, an economist at Salomon Bros. “My sense is that we will continue to see solid housing activity.”

In California, torrential rains did little to dampen eager home buyers, with sales results increasing 7.7% from January to a seasonally adjusted, annualized rate of 621,560 properties, according to the California Assn. of Realtors.

“The underlying market dynamic in the California housing sector is very strong,” said Leslie Appleton-Young, chief economist of the state real estate group, in a statement. “Low mortgage interest rates, rising consumer confidence and low unsold inventory all point to continued home price appreciation in the coming months.”

The statewide median price of an existing single-family home sold in February fell 2.1% from January, to $186,580. However, the February median represented an 11.2% increase over the same month last year--the largest year-over-year price gain since September 1989.

Nationwide, the median sales price in February rose 5.8% over the same month last year, to $124,300. An estimated 4.27 million homes will be sold this year, up 1.3% from 1997, according to the most recent housing projections.

The robust outlook for the nation’s housing market also reflects the turnaround in once-flagging real estate markets in California and the Northeast. “It’s great that California is finally getting a piece of the action,” said Fred Flick, vice president of research at the national Realtors group.

In Southern California, Mike Silvas, president of Dilbeck Realtors, said his 11-office firm saw February sales volume jump 20% on a year-over-year basis. The firm, which sells homes primarily in the San Gabriel and San Fernando valleys, said houses priced $400,000 and above performed the best.

“We had a fabulous month in February,” said Silvas. “We are anticipating that the market will stay at least as strong through the fall.”

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Existing-Home Sales

Seasonally adjusted annual rate, in millions of units:

Feb.: 4.8

Source: National Assn. of Realtors