Existing home sales fell 9.6% in February, month-over-month.
The annual rate is at 4.88 million in sales. Expectations were for an annualized 5.15 million.
There is an 8.6 month supply of homes in the market and prices are still falling, according to Realtor.org.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, dropped 9.6 per cent to a seasonally adjusted annual rate of 4.88 million in February from an upwardly revised 5.40 million in January, and are 2.8 per cent below the 5.02 million pace in February 2010.
Lawrence Yun NAR chief economist, expects an uneven recovery. “Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers,” he said. “This tug and pull is causing a gradual but uneven recovery. Existing-home sales remain 26.4 per cent above the cyclical low last July.”
It’s important to consider the fact that because these numbers are smaller than normal, percentage change is easier to achieve. The housing market is, essentially, weak.