Sales of previously occupied U.S. homes rose in February as easing mortgage rates and more properties on the market encouraged home shoppers.
Existing home sales rose 4.2% last month from January to a seasonally adjusted annual rate of 4.26 million units, the National Association of Realtors said Thursday.
Sales fell 1.2% compared with February last year, ending a string of five straight annual increases. The latest home sales topped the 3.92 million pace economists were expecting, according to FactSet.
Home prices increased on an annual basis for the 20th consecutive month. The national median sales price rose 3.8% in February from a year earlier to $398,400.
“Home buyers are slowly entering the market,” said Lawrence Yun, NAR’s chief economist. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
There were 1.24 million unsold homes at the end of last month, up 5.1% from January and up 17% from February last year, NAR said.
That translates to a 3.5-month supply at the current sales pace, unchanged from January and up from a 3-month pace at the end of February last year. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.
