Home Sales Fall Slightly From Record-High Rate

Sales of existing U.S. homes fell slightly in February but still posted the second-best annual rate ever, showing the housing sector remains on firm footing, a national real estate trade association said Monday.

Sales of previously owned homes, the largest category of home sales, declined 2.8% last month to a seasonally adjusted annual rate of 5.88 million, the National Assn. of Realtors said.

The January rate was revised upward to a record 6.05 million.

February’s pace exceeded the forecasts of analysts, who on average had expected an annual sales rate of 5.52 million. Housing activity has remained vigorous throughout the U.S. economic slump that started a year ago.

Median home prices were down a statistically insignificant amount last month, to $150,000 from $150,300 in January, but were up 8.2% from a year earlier.

In a separate report, the California Assn. of Realtors said the number of previously owned homes sold in the state jumped 25.5% in February from a year earlier, lifting prices by a robust 19.8% and pushing many first-time homeowner dreams out the window.

Concern about rising interest rates and ongoing tight supply drove the median price on an existing single-family home up to $289,550 during February, from $241,690 last year, CAR reported.

Regionally, sales climbed by 1.4% in the Northeast but fell 4.2% in the South, 3.7% in the West, and 0.8% in the Midwest.

Inventories remained lean at an unchanged 4.2 months’ supply of homes available at the current sales pace.

*

(BEGIN TEXT OF INFOBOX)

Home Sales