Existing home sales fell 7.1% to a seasonally adjusted 5.08 million-unit rate in February from an unrevised 0.4% increase to a 5.47 million pace the previous month, the National Association of Realtors announced Monday.
The February rate represents a 2.2% increase from the same month a year ago, and fell short of the median 5.34 million unit pace predicted by economists polled by Thomson Reuters.
“Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,” said NAR chief economist Lawrence Yun. “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. Finding the right property at an affordable price is burdening many potential buyers.”
Sales in the regions were lower in February. They were down 13.8% in the Midwest, 17.1% in the Northeast, 1.8% in the South, and 3.4% in the West.
The median sales price was $210,800 in February, a 4.4% increase from a year ago.
Inventory levels grew 3.3% from the previous month to 1.88 million existing homes, representing a 4.4-month supply at the current pace. Inventory was down 1.1% from the February 2015 level.
