MNI DATA IMPACT: February Existing Home Sales Surge To 5.51M

By Kevin Kastner and Harrison Clarke

     WASHINGTON (MNI) - The pace of existing home sales jumped by 11.8% to a

5.51 million annual rate in February, well above the 5.10 million rate expected

by both the Bloomberg consensus and an MNI survey of analysts, a recovery after

three straight declines.

     The following are the other key points from the February existing home

sales data released Friday by the National Association of Realtors:

     - January home sales were revised down slightly to a 4.93 million pace from

the 4.94 million rate previously reported.

     - The first quarter average pace of sales at 5.22 million stands above the

5.14 million average for the fourth quarter after revisions are included.

     - February resales in Northeast unch, Midwest +9.5%, South +14.9%, and West

+16.0%.

     - February home supply +2.5% to 1.63m, +3.2% year/year, but the strong

sales pace pulled down the months supply to 3.5 months from 3.9 months in

January. There was a 3.4 months supply a year ago.

     - NAR's Chief Economist Lawrence Yun said that lower interest rates, more

inventories, and stronger wage growth are keys to this month's gain. The 11.8%

jump is the largest since December 2015 and well outside of the normal range of

monthly gains.

     - National median sales price +3.6% y/y to $249,500 in February.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

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