U.S. Home Sales Hit Highest Level Since 2009

---

The U.S. housing market continues to show signs of recovery, with February existing home sales rising 10.2 percent from a year earlier, according to data released today by the National Association of Realtors.

NAR reported 4.98 million transactions in February, the highest level since 2009, when a tax credit was available for purchases. The total compares to 4.94 million in January and 4.52 million in February, 2012.

The national median price rose to $173,600, an 11.6 percent increase from February 2012--the largest gain since November, 2005.
 
The latest data affirms "a healthy recovery" for the market, NAR reports. Sales have been above year-ago levels for 20 consecutive months, while prices show 12 consecutive months of year-over-year price increases.

"Job growth in the improving economy and pent-up demand are causing both home sales and rental leasing to rise," NAR chief economist Lawrence Yun said. "Though home prices are rising much faster than rents, historically low mortgage rates are still making home purchases affordable."

But there are "headwinds," including limited housing inventory and "credit conditions that remain too restrictive," Mr. Yun said.

Sales of distressed homes accounted for 25 percent of February sales, up from 23 percent in January, but down from 34 percent in February 2012, NAR reports. Fifteen percent of February sales were foreclosures, and 10 percent were short sales. The foreclosure properties typically sold at an 18 percent discount from market value.

Although there have been reports of dwindling supply in many markets, the overall housing inventory at the end of February actually rose 9.6 percent to 1.94 million existing homes available for sale, representing a 4.7-month supply at the current sales pace, up from 4.3 months in January, the lowest supply since May 2005, NAR reports.  Listed inventory is 19.2 percent below a year ago when there was a 6.4-month supply.

More from the NAR report:

• The median time on market for all homes was 74 days in February, which is 24 percent below 97 days in February 2012.  Short sales were on the market for a median of 101 days, while foreclosures typically sold in 52 days and non-distressed homes took 77 days.  One out of three homes sold in February was on the market for less than a month.

• First-time buyers accounted for 30 percent of purchases in February, unchanged from January; they were 32 percent in February 2012.

• All-cash sales were at 32 percent of transactions in February, up from 28 percent in January; they were 33 percent in February 2012.  Investors, who account for most cash sales, purchased 22 percent of homes in February, up from 19 percent in January; they were 23 percent in February 2012.

• Single-family home sales slipped 0.2 percent to a seasonally adjusted annual rate of 4.36 million in February from an upwardly revised 4.37 million in January, but are 8.7 percent above the 4.01 million-unit pace in February 2012.  The median existing single-family home price was $173,800 in February, which is 11.3 percent higher than a year ago.

• Existing condominium and co-op sales rose 8.8 percent to an annualized rate of 620,000 in February from 570,000 in January, and are 21.6 percent above the 510,000-unit level a year ago.  The median existing condo price was $172,500 in February, up 13.9 percent from February 2012.

• Regionally, existing-home sales in the Northeast fell 3.1 percent to an annual rate of 630,000 in February but are 8.6 percent above February 2012.  The median price in the Northeast was $238,800, which is 7.6 percent above a year ago.

• Existing-home sales in the Midwest slipped 1.7 in February to a pace of 1.14 million but are 12.9 percent above a year ago.  The median price in the Midwest was $129,900, up 7.7 percent from February 2012.

• In the South, existing-home sales increased 2.6 percent to an annual level of 2.01 million in February and are 14.9 percent above February 2012.  The median price in the South was $150,500, up 9.3 percent from a year ago.

• Existing-home sales in the West rose 2.6 percent to a pace of 1.20 million in February and are 1.7 percent above a year ago.  With limited choices and multiple bidding, the median price in the West rose to $237,700, which is 22.7 percent above February 2012.