Existing home sales increased 5.1% in February to a seasonally adjusted 4.72 million-unit rate, the National Association of Realtors announced yesterday.
The sales rise to 4.72 million, contrasted with a drop to a 4.45 million unit pace predicted by Thomson Reuters’ poll of economists and followed an unrevised 5.3% slide to a 4.49 million unit level in January.
On a year-over-year basis, sales overall were down 4.6% from a 4.95 million-unit sales pace last February.
“Because entry-level buyers are shopping for bargains, distressed sales accounted for 40% to 45% of transactions in February,” said Lawrence Yun, NAR’s chief economist. “Our analysis shows that distressed homes typically are selling for 20% less than the normal market price, and this naturally is drawing down the overall median price.”