Resales Reverse Course, Rise 5.2%

Existing-home sales jumped 5.2% in February after a five-month decline, but economists contend that this spike will not reverse the downward trend in home sales.The National Association of Realtors reported that February sales of single-family homes, condominiums, and cooperatives increased from a seasonally adjusted annual rate of 6.57 million in January to 6.91 million in February. Fannie Mae chief economist David Berson noted that unusually warm weather in January led to a pick-up in home sales in February. But he said he expects home sales to decline in March and April. "The trend is clearly downward," and the pace of home price gains will continue to slow, he said. The NAR report shows that existing single-family home sales increased by 4.7% in February and the median single-family price was up 11.6% from that of a year ago. Single-family price appreciation peaked at a 16.4% annual rate last September. Meanwhile, existing condo and co-op sales jumped 8.8% in February as prices rose at a 3.5% annual rate.