WASHINGTON (AP) – Americans retreated from home-buying in February, reversing months of prior gains as low inventories push up prices to levels that restrict sales.
The National Association of Realtors said Monday that sales of existing homes fell 7.1 percent last month to a seasonally adjusted annual rate of 5.08 million. The decline follows robust yearly sales rates of 5.47 million in January and 5.45 million in December, a new regulation had delayed closings in November.
The housing market enters the traditional spring buying season facing a quandary: There are relatively few properties listed for sale, even as steady job gains and low mortgage rates have bolstered demand from would-be buyers. The limited supplies have fueled rising prices that have, in turn, reduced affordability and limited sales levels.
The median home sales price was $210,800 in February, a 4.4 percent annual increase from a year ago.
Tight supplies have driven the increases in home prices, forcing buyers to bid more for hotly contested homes.