WASHINGTON – Existing home sales tumbled 9.6% to a seasonally adjusted 4.88 million in February as the median sale price fell to its lowest level in almost nine years, the National Association of Realtors reported Monday.
January’s existing home sales figure was revised higher to 5.40 million from 5.36 million. February’s median home sales price dropped to $156,100, the lowest level since April 2002.
Economists polled by Thomson Reuters expected 5.15 million sales, according to the median estimate.
The February sales data represent closings on deals negotiated during severe winter storms in January and December. NAR’s chief economist Lawrence Yun said a “weather-related impact” on sales was likely, but “continuing credit inaccessibility” also weighed on sales.
Sales are especially weak in the middle price range, Yun said. Sales in February increased for houses bought for less than $100,000 and for homes of $500,000 or more, he said.
“The middle market is really being held back,” Yun said. The February sales data demonstrate an “uneven, choppy recovery” for the housing market, he said.
The supply of homes for sale increased to 8.6 months in February from 7.5 months in January.
Foreclosures dropped to a three-year low in February, falling 13.9%, according to RealtyTrac, as lingering legal issues held up foreclosures.
John Lonski, chief economist at Moody’s Analytics, said the foreclosure delays “may prevent home prices from bottoming in the summer as many expected, which would lengthen the timeline to achieve a sustained housing recovery,” he said in a research note published before the report.
Foreclosure sales represented 26% of all sales in February, NAR said.
All-cash transactions for existing home sales increased to 33% of all transactions, the highest level on record for NAR data that go back to August 2008, Yun said. The figure is another example of the limited credit availability to buyers, he said.
