Existing-Home Sales Drop in February

Last month saw a considerable tumble for housing sales, according to new data from the National Association of Realtors (NAR).

Total existing-home sales for February registered a seasonally adjusted annual rate of 5.08 million in February, down 7.1 percent from 5.47 million in January. On a year-over-year measurement, however, sales were up 2.2 percent.

The share of first-time buyers fell to 30 percent in February—the lowest percentage since November 2015—from 32 percent in January. On a year-over-year basis, the share is up from 29 percent in February 2015. All-cash sales were 25 percent of transactions in February, down from the 26 percent level reached in both the previous month and a year ago.

The median existing-home price for all housing types in February was $210,800, up 4.4 percent from the $201,900 mark in February 2015. And the total housing inventory increased 3.3 percent from the previous month to 1.88 million existing homes available. Still, it was 1.1 percent lower than a year ago.

Lawrence Yun, NAR chief economist, blamed the disappointing data on Mother Nature, although he admitted that the market’s problems go beyond inclement weather.

“Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,” Yun, said. “The lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February’s lack of closings. However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers.”