Home Sales Continued Decline in February

Washington, DC, April 8, 2008—House resales declined more than forecast in February, according to the National Association of Realtors.

The trade group said its index of purchase agreements decreased 1.9 percent to 84.6, the lowest reading since records began in 2001. The drop follows a revised 0.3 percent increase in January.

Falling real estate values and tighter credit are keeping potential home buyers out of the market.

Economists had predicted the index would fall 1 percent.

NAR forecasts that existing-home sales in 2008 will fall to 5.39 million compared with 5.65 million last year, and sales of new homes will decline to 576,000 from 775,000 in 2007.