Home Sales Rise on Record Price Decline

Washington, DC, March 24, 2008—A record decline in housing prices propelled a modest rise in the sales of existing homes in February, according to the National Association of Realtors.

Sales of existing homes and condos rose 2.9 percent to a seasonally adjusted annualized rate of 5.03 million.

It's the strongest pace since October. However, sales are still down 23.8 percent compared to the same time last year.

Inventories fell 3 percent to 4.03 million, which represents more than a nine month supply.

The median sales price plummeted to $195,900, down 8.2 percent from last year, the largest price decline recorded. Prices of single-family homes dropped by 8.7 percent over the past year, also a record.

Sales rose in three of four regions, with the West still falling. Sales rose 11.3 percent in the Northeast, 2.5 percent in the Midwest and 2.1 percent in the South, while sales fell 1.1 percent in the West.