Median sales prices drops to lowest level since 2002
By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — Sales of previously owned homes dropped 9.6% in February and prices fell to their lowest level since 2002, reflecting a continued slump in the U.S. real estate market.
The National Association of Realtors on Monday said sales of existing homes dropped to a seasonally-adjusted annual rate of 4.88 million from an upwardly revised 5.4 million in January. Economists surveyed by MarketWatch expected sales to drop to a rate of 5.1 million.
The median price of homes sold fell 5.2% from last year to $156,100, the lowest since April 2002. Price retreated in all four major regions of the U.S.
Inventories of existing homes for sale rose 3.5% to 3.49 million, representing 8.6 months’ supply. That was up from 7.6 months last month.
Sales of new and used homes have been down in the dumps since a housing market bubble burst after the onset of the 2007-2009 recession. A high unemployment rate, combined with stricter lending standards, have made it harder for Americans to buy homes despite low interest rates.
Many families have also lost their homes because they couldn’t keep up with mortgage payments, putting more properties onto the market. The raft of foreclosures has helped to drive down prices and some buyers appear to be holding out for even better deals.
