U.S. February Existing Home Sales - Stronger than expected, trend fairly flat
February existing home sales with a 1.7% increase to 4.09m are stronger than expected and while the rise does not fully erase January’s decline, that drop has been revised to -5.9% from -8.4% making the net gain well above expectations.
Weakness in January pending home sales plus some softening in February survey evidence from the NAHB and MBA had led most forecasters to expect a weak number. Underlying trend looks fairly flat in recent months, with January’s drop following a strong 4.4% rise in December.
Regionally the Northeast saw a second straight drop which may have been exaggerated by weather. The Midwest and South saw modest gains that failed to reverse January declines, and here too weather may have been a restraint. The West, less impacted by recent cold weather, saw a strong increase.
The median price rise by 0.8% on the month which is the first ruse since October but the rise is seasonal. Yr/yr growth at 0.3% is minimal and has changed little over the last three months.
