National existing home sales decline in February
Existing home sales declined slightly during February in the United States, but increased in the Midwest and Northeast, according to the National Association of Realtors (NAR).
Existing home sales slipped 0.6 percent nationally in February to a seasonally adjusted annual rate of 5.02 million units, from 5.05 million in January. That was still higher, however, than the 4.69 million-unit pace a year ago.
Figures were slightly above Briefing.com analysts’ expectations, CNNMoney.com reported.
“Although sales have been higher than year-ago levels for eight straight months and home prices are much more stable compared to the past few years, the housing recovery is fragile at the moment,” said Lawrence Yun, NAR chief economist, in a release.
Yun said February’s widespread winter storms could have masked underlying demand because buyers were unable to get out and look at homes in some areas.
Total housing inventory at the end of February rose 9.5 percent.
“The key test for a durable recovery comes in the next few months as the tax credit deadline approaches,” Yun said in a release. “If we see a surge in home buying comparable to last fall in the months leading up to the original tax credit deadline, then enough inventory should be absorbed to ensure a broad home price stabilization.”