ARLINGTON, Va.—Existing-home sales fell 6.6% in February to a seasonally-adjusted rate of 6.22 million units, representing a 9.1% increase in sales versus a year ago, but as NAFCU's Curt Long noted, supply is having a detrimental effect on the housing market, especially when it comes to less-expensive homes.
"Mortgage rates have risen slightly towards the end of February, which should have an effect on demand," said Long, NAFCU's chief economist and vice president of research. "Regardless, even with significant headwinds, the appetite for housing is insatiable.
"NAFCU expects demand to chase supply for the rest of the year, resulting in a solid sales pace and strong price growth through at least the end of the year. A recovering economy in the second half of the year will also push sales up as much as supply can handle," concluded Long.
Sales rose in only one region – the West at 4.6% – in February. Sales in the Midwest declined 14.4%, followed by the Northeast (-11.5%), and the South (-6.1%). Versus a year ago, sales were up in all regions over the month.
The median existing-home price rose from $303,600 in January to $313,000 in February (not seasonally-adjusted), representing a 15.8% increase from the median price a year ago, Long said.