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.
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Wells Fargo Research Team
Wells Fargo
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