February existing-home sales declined 0.9 percent to 4.59 million from a January pace of 4.63 million but are 8.8 percent higher than the 4.22 million-unit level in February 2011, according to the National Association of Realtors.
February existing-home sales declined 0.9 percent to 4.59 million from a January pace of 4.63 million but are 8.8 percent higher than the 4.22 million-unit level in February 2011, according to the National Association of Realtors.
"The market is trending up unevenly, with record high consumer buying power and sustained job gains giving buyers the confidence they need to get into the market," said Lawrence Yun, NAR chief economist. "Although relatively unusual, there will be rising demand for both rental space and homeownership this year. The great suppression in household formation during the past four years was unsustainable, and a pent-up demand could burst forth from the improving economy."
Single-family home sales declined 1.0 percent to a seasonally adjusted annual rate of 4.06 million in February from 4.10 million in January, but are 9.4 percent higher than the 3.71 million-unit level a year ago. The median existing single-family home price was $157,100 in February, which is 0.1 percent above February 2011.
"Supply and demand have become more balanced in more markets, but with tight supply in the lower price ranges-particularly in the West," said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc. in Miami. "When markets are balanced, we normally see prices rise one to two percentage points above the rate of inflation, but foreclosures and short sales are holding back median prices."
Ian Shepherdson, chief U.S. economist at High Frequency Economics, told the Associated Press that the lower February numbers "should not detract from the key point, which is that sales are trending upward."
