Existing Home Sales Fell 3.7% in February, But Up 5.4% YOY

Washington, DC, March 22, 2017—After starting the year at the fastest pace in almost a decade, existing-home sales slid 3.7% in February but remained above year ago levels both nationally and in all major regions, according to the National Association of Realtors.

Total existing-home sales retreated 3.7% to a seasonally adjusted annual rate of 5.48 million in February from 5.69 million in January.

Despite last month's decline, February's sales pace is still 5.4% above a year ago.

Lawrence Yun, NAR chief economist, says closings retreated in February as too few properties for sale and weakening affordability conditions stifled buyers in most of the country. "Realtors are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that's pushing up price growth and pressuring the budgets of prospective buyers," he said. "Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market."

The median existing-home price for all housing types in February was $228,400, up 7.7% from February 2016 ($212,100). February's price increase was the fastest since last January (8.1%) and marks the 60th consecutive month of year-over-year gains.

Total housing inventory at the end of February increased 4.2% to 1.75 million existing homes available for sale, but is still 6.4% lower than a year ago (1.87 million) and has fallen year-over-year for 21 straight months. Unsold inventory is at a 3.8-month supply at the current sales pace (3.5 months in January).