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WASHINGTON (Thomson Financial) - Sales of previously owned homes in the US
rose in February after six straight months of declines, due in part to the
largest ever year-over-year decline in home prices, the National Association of
Realtors (NAR) said today.
Sales increased 2.9 pct in February to an annual rate of 5.03 mln units,
from the 4.89 mln unit pace in January. The 2.9 pct rise is the largest monthly
increase in home sales in a year.
Economists polled by Thomson's IFR Markets were expecting the pace to fall
slightly to 4.85 mln units.
Despite the increase, the February sales pace is 23.8 pct below the pace set
in February 2007.
The realtors group said falling home prices played a significant role in the
rebound in home sales. The median sales price fell 8.2 pct in the past year to
195,900 usd, which is the largest year-over-year drop since the group began
tracking this data.
The last time the median price was lower was May 2004.
"The relationship between home prices, interest rates and income has
improved to the point where buyers are more serious about making offers," NAR
Chief Economist Lawrence Yun said today.
Inventories of existing home sales, which includes both single family homes
and condominiums, fell 3.0 pct in February to 4.03 mln units. At the February
sales pace, it would take 9.6 months to exhaust the supply of homes on the
market, down from the 10.2 months supply in January.
Sales of single family homes by themselves rose 2.8 pct in February to a
4.47 mln unit pace, while prices fell 8.7 pct.
Sales of condos rose 3.7 pct in February to a 560,000 unit pace, while
prices dropped 4.9 pct.
Sales increased in three of the four regions of the country. Sales in the
lagging Northeast rose 11.3 pct, and rose 2.5 pct in the Midwest and 2.1 pct in
the South. Sales in the West fell a modest 1.1 pct.
pete.kasperowicz@thomson.com
pik/tlm/wash
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