Existing Home Sales Fell in February After Decade-High Pace

The National Association of Realtors (NAR) fell in February after starting the year at a decade-high pace, though it still remained above year ago levels. Total existing-home sales 1, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, retreated 3.7 percent to a seasonally adjusted annual rate of 5.48 million in February from 5.69 million in January. Despite last month’s decline, February’s sales pace is still 5.4 percent above a year ago.

“Realtors are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that’s pushing up price growth and pressuring the budgets of prospective buyers,” Lawrence Yun, NAR chief economist said. “Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market.”

The median existing-home price 2 for all housing types in February was $228,400, up 7.7% from February 2016 ($212,100). February’s price increase was the fastest since last January (8.1%) and marks the 60th consecutive month of year-over-year gains.

“A growing share of homeowners in NAR’s first quarter HOME survey said now is a good time to sell, but until an increase in listings actually occurs, home prices will continue to move hastily.”

Regional Breakdown

February existing-home sales in the Northeast slumped 13.8% to an annual rate of 690,000, but are still 1.5% above a year ago. The median price in the Northeast was $250,200, which is 4.1% above February 2016.

In the Midwest, existing-home sales fell 7.0% to an annual rate of 1.20 million in February, but are still 2.6% above a year ago. The median price in the Midwest was $171,700, up 6.1% from a year ago.

Existing-home sales in the South in February rose 1.3% to an annual rate of 2.34 million, and are now 5.9% above February 2016. The median price in the South was $205,300, up 9.6% from a year ago.

Existing-home sales in the West decreased 3.1% to an annual rate of 1.25 million in February, but are 9.6 percent above a year ago. The median price in the West was $339,900, up 9.6% from February 2016.