WASHINGTON: US existing-home sales rebounded slightly in February but gains were held back by higher prices, the National Association of Realtors said Monday.
Total sales of used homes rose 1.2 percent to an annual rate of 4.88 million units in February, led by sales of single-family homes, the largest part of the housing market.
In January, sales had fallen 4.9 percent month-over-month to the slowest pace in nine months.
Sales in February faced unusually cold winter weather and severe snowstorms in large parts of the country.
Lawrence Yun, NAR chief economist, said that tight inventory was pushing prices to "near-unsuitable levels" in several areas of the country.
"Stronger price growth is a boon for homeowners looking to build additional equity, but it continues to be an obstacle for current buyers looking to close before rates rise," Yun said in a statement.
"With all indications pointing to a rate increase from the Federal Reserve this year -- perhaps as early as this summer -- affordability concerns could heighten as home prices and rents both continue to exceed wages."
The average 30-year mortgage rate rose for the first time since September to 3.71 percent in February, according to the NAR, citing Freddie Mac data.
Total housing inventory at the end of February increased 1.6 percent to 1.89 million units, down 0.5 percent from a year ago. At the current sales pace, there was a 4.6-month supply of unsold homes on the market, the same level as in January.
Single-family home sales rose 1.4 percent in February, with the median sales price of $204,200 up 8.2 percent from a year ago.
Condominium and co-op sales were flat; the median price of $190,200 was 2.8 percent higher than a year ago.
"These are closed contracts that were signed in December and/or January, months that were dealt a bad hand, weather-wise (snowstorms in the East... and extreme cold across much of the country)," said Jennifer Lee of BMO Capital Markets in a research note.
"The good news is, it was flat-to-higher everywhere else."
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