U.S. Home Resales Decline 9.6% in February

Arjun Dave
21 Mar, 2011
New York City

U.S. existing home sales rate declined 9.6% to 4.88 million and median home price fell 5.2% to $156,100. Inventory of unsold homes increased to 8.6-month supply.

[R]11:00 AM New York – U.S. existing home sales rate declined 9.6% to 4.88 million and median home price fell 5.2% to $156,100. Inventory of unsold homes increased to 8.6-month supply.[/R]

Seasonally adjusted annual rate for existing U.S. home sales in February decreased 9.6% to 4.88 million from upwardly revised 5.40 million units in January.

Home sales declined 2.8% from a year ago of 5.02 million units rate in the month, according to the latest data reported by the National Association of Realtors.

Lawrence Yun, Chief economists at the industry group said, “We have an uneven, choppy recovery.”

The median home price declined 5.2% from a year ago to $156,100 to the lowest last seen in April 2002. The median home price in January fell was $157,900.

The inventory of unsold homes at the end of February increased to 3.5% to 3.49 million homes, representing 8.6-month supply at the current annual sales rate.

The sale of distressed properties sales are increasingly affecting the resale market and these homes including short sales and in foreclosures are now 39% of sales in the month.

Bank lending has been difficult for most borrowers as banks have tightened the loan process and asking higher down payment for the home loans.

January home sales rate was revised higher to 5.4 million from an initial estimate of 5.36 million according to the data released by the National Association of Realtors.

The Realtors association said that home sales declined 12.2% in the Midwest, 10.2% in the South, dropped 8% in the West and 7.2% in the Northeast.

U.S. Commerce Department last week said that new home construction declined the most in nearly 27 years in February and an index of home prices in large 20 metropolitan areas indicated price weakness.