Existing Home Sales Bounce Back in February

After falling in 3 of the past 4 months, sales of existing homes roared back in February. Overall sales jumped 11.8% to a 5.51 million-unit pace. Sales benefited from better weather early this year and lower mortgage rates.

Sales of Existing Homes Ramped Up in February

• After declining for much of last year, existing home sales were poised for rebound. Pending home sales, which reflect purchase contracts, had jumped 4.6% in January, which meant that sales, which reflect closings, would likely rise in February.
• Seasonal adjustment likely exaggerated the extent of the improvement. The 5.51 million-unit pace is 1.8% below the yearago pace, which was also the cyclical peak. benefitted

Homes Are Still Selling Quickly

• Sales of single-family homes rose 13.3% in February, while sales of condo/co-ops were unchanged. Sales rose in every region except the Northeast, which may explain why sales of condo and co-ops were unchanged during the month.
• Existing home inventories continue to trend higher and are 3.2% above their year-ago level. Homes are remaining on the market longer than a year ago, which has moderated price appreciation.

Download The Full Economic Indicators