Sales of existing properties fell by 6.6 percent from January to February. That is based on data released Monday by the National Association of Realtors.
Existing home sales fell 6.6 percent from January to February as inventory levels remain at historic lows, prices continue to rise across the country, and mortgage rates continue to rise weekly.
Despite the decline, existing home sales remained 9.1 percent higher than in February 2020, according to data released Monday by the National Association of Realtors (NAR) that the property market surpassed last year’s sales rate before the pandemic hit the country concluded Nieder.
“Despite the fall in home sales in February – which I would attribute to historically low inventory levels – the market is still outperforming pre-pandemic levels,” NAR chief economist Lawrence Yun said in a statement.
As at the end of January, the total inventory at the end of the month was 1.03 million units, but was 29.5 percent below the previous year’s level. At the current rate of sales, there are two months of unsold inventory.
With inventories at historic lows, competition for home ownership is driving prices higher. The median price of existing properties for all apartment types rose 15.8 percent year over year to $ 313,000 in February.
According to Yun, rising real estate prices and mortgage rates of over 3 percent could ultimately affect affordability and further slow down the booming real estate market. However, he continues to assume that it will exceed the level of the previous year.
“I still expect sales this year to be higher than last year. With more COVID-19 vaccinations distributed and available to larger populations, the nation is on the verge of a return to a sense of normalcy.” said Yun. “Many Americans have saved money and there is a good chance that these reserves will be released to the economy once the country is fully reopened.”
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