MNI DATA REACT: US Feb Home Sales Reach Highest Since 2007

By Ryan Hauser

     WASHINGTON (MNI) - U.S. home sales jumped to the highest since 2007 in

February, climbing 6.5% to 5.77 million, the National Association of Realtors

said Friday.

     "Incredibly low mortgage rates and the steady release of a sizable pent-up

housing demand that was built over recent years," aided the increase, said

Lawrence Yun, NAR's chief economist.

     Sales did not reflect the recent stock market crash or the COVID-19

pandemic. "The coronavirus has undoubtedly slowed buyer traffic and it is

difficult to predict what short-term effects the pandemic will have on future

sales," Yun said.

     The median home price reached $270,100, up 8.0% from February 2019, showing

gains across every region. Year-over year sales rose 7.2%.

     "Unlike the stock market, home prices are not expected to drop because of

the on-going housing shortage and due to homes getting delisted during this time

of crisis," he said.

     February sales increased 0.8% in the Midwest, 7.2% in the South, and 18.9%

the West, but fell 4.1% in the Northeast. 

     Distressed sales (foreclosures and short sales) only comprised 2% of

February sales, unchanged from January.

--MNI Washington Bureau; +1 202 371 2121; email: ryan.hauser@marketnews.com

[TOPICS: MAUDS$,M$U$$$]