Nar: mixed fortunes for us market

A new report by the National Association of Realtors (NAR) paints a ‘mixed picture’ of the US housing market…

While February broke a six-month streak of decreasing home sales, it also saw an 8.2% decline in median home prices from a year ago. That drop to US$195,900 was the sharpest since the trade group began keeping records in 1968.

The pace of existing home sales in the United States rose in February to a 5.03 million-unit annual rate while prices took a record fall. The U.S. dollar rose and U.S. Treasury prices extended their drop to session lows after the stronger-than-expected data.

Lawrence Yun, NAR chief economist, commented: “The home price decline probably spurred sales in some regions. Falling prices increase affordability but at the same time there is a psychological element of buyers who are sitting on the fence while prices drop”.

Mr Yun Added: "The inventory of homes for sale fell 3% to 4.03 million units at the end of February, which represents a 9.6 months' supply at the current sales pace. Only the West saw sales decrease, with sales down 1.1%, while the other regions saw sales rise. Home sales were up 11.3% in the Northeast, 2.5% in the Midwest and 2.1% in the South".