Existing home sales fell 6.6% in February to the slowest rate since August, according to NAR data.The median selling price crept higher to $313,000 to tie the record high seen in October.Sales of previously owned homes in the US declined more than expected in February as the housing market's supply shortage further curbed the recent buying spree.
published by the National Association of Realtors. The reading is the first decline since November and drags the pace of sales to its lowest since August. Still, sales are up 9.1% from the year-ago level.The median existing-home price crept higher to $313,000, marking 108 consecutive months of year-over-year gains. The new level ties October's record high and sits 15.8% above the year-ago level.1.03 million units at the end of last month.
Supply strains have since lifted prices even higher, and mortgage rates are now reversing their months-long decline. Lumber shortages have also pressured costs, with the National Association of Home Builders saying last month that rising material costs areThese obstacles will likely curb the market's rally as the economy reopens, Nancy Vanden Houten, lead US economist at Oxford Economics, said.
The National Association of Realtors is more bullish toward the strained market. While affordability is weakening, strong savings and a boost from Democrats' latest relief package should keep demand elevated through 2021, Lawrence Yun, chief economist at NAR, said.