Existing-home sales in February were at a seasonally adjusted annual rate of 5.08 million units from 5.47 million in January, a 7.1 percent drop, according to the National Association of Realtors.
The decrease was caused by low supply levels and price growth in several sections of the country, said Lawrence Yun, NAR chief economist, in a statement.
“Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,” he said. “[T]he main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers.”
February existing-home sales in the Northeast declined 17.1 percent to an seasonally adjusted annual rate of 630,000. In the Midwest, existing-home sales decreased 13.8 percent to an annual rate of 1.12 million. Existing-home sales in the South dropped 1.8 percent to an annual rate of 2.20 million. And in the West, existing-home sales dipped 3.4 percent to an annual rate of 1.13 million.
