Home Sales Rise in February but Prices Drop 15%

Sales of single-family existing homes rose 4.4% in February from the previous month and sales may be stabilizing as the spring selling season begins. The National Association of Realtors reported that sales of existing SF homes rose from a seasonally adjusted annual rate of 4.05 million in January to 4.23 million in February. The median price of a home sold in February was $164,600, up $400 from January. However, the median house price is down 15% from a year ago. NAR chief economist Lawrence Yun noted that foreclosures and short sales make up 40% to 45% of sales. "Our analysis shows that distressed homes typically are selling for 20% less than the normal market price, and this naturally is drawing down the overall median price." Meanwhile, sales of condominiums and co-ops jumped 11.4% in February, compared to the previous month.