Existing US Home Sales Reverse 12-Month Slide In Feb, Up Most Since July 2020 - Realtors

Existing US Home Sales Reverse 12-Month Slide in Feb, Up Most Since July 2020 - Realtors

Sales of existing homes in the United States reversed a 12-month slide in February to post the largest monthly percentage growth since July 2020, despite sales being down year-on-year, the country's leading realtors group said Tuesday

WASHINGTON (Pakistan Point News / Sputnik - 21st March, 2023) Sales of existing homes in the United States reversed a 12-month slide in February to post the largest monthly percentage growth since July 2020, despite sales being down year-on-year, the country's leading realtors group said Tuesday.

"Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines," Lawrence Yun, chief economist of the National Association of Realtors, said. "Moreover, we're seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs."

Total existing-home sales � including single-family homes, townhomes, condominiums and co-ops � vaulted 14.5% from January to a seasonally adjusted annual rate of 4.58 million in February, the realtors' group said.

Year-over-year, sales fell 22.6%, sliding from 5.92 million in February 2022.

Sales jumped for February as the median existing-home price for all housing types in February fell 0.2% to $363,000, from the February 2022 level of $363,700, the association reported.

"This ends a streak of 131 consecutive months of year-over-year increases, the longest on record," Yun said. "Inventory levels (for homes) are still at historic lows. Consequently, multiple offers are returning on a good number of properties."

Property prices also dropped as average mortgage, or lending rates, softened from recent highs, the realtors group said.

According to national mortgage agency Freddie Mac, the 30-year fixed-rate on mortgages averaged 6.6% as of March 16. That was down from 6.73% from the previous week but up from 4.16% a year ago.

Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022, the realtors group said, adding that 57%� of homes sold in February were on the market for less than a month.

Housing and real estate play important roles in the US economy, with roughly 65% of occupied housing units being owner-occupied. That makes homes a substantial source of household wealth and home construction a key provider of employment.

In the 2008/09 financial crisis, a crash of the housing market precipitated what later came to be known as the era of the Great Recession. Following that, the property market had been mostly buoyant on the back of steady economic growth and demand from buyers, although surging inflation, interest rates and borrowing costs over the past year have put a damper on the sector.