Existing home supply fell in February

Washington -- Existing-home sales rose in February, indicating some stability in the U.S. housing market, the National Association of Realtors said Monday.

Total sales of single-family homes, townhomes, condominiums and co-ops, rose 2.9 percent to a seasonally adjusted annual rate of 5.03 million units in February from a revised 4.89 million in January, the association said in a news release.

The figures were about 23.8 percent below the 6.6 million level in February 2007.

"We're not expecting a notable gain in existing-home sales until the second half of this year, said Lawrence Yun, NAR chief economist.

The national median price for all housing types was $195,900 in February, down 8.2 percent from the February 2007 median price of $213,000. Total inventory of existing homes fell 3 percent at the end of February to 4.03 million for sale, a 9.6-month supply at the current sales pace.

In January there was a 10.2-month supply of existing homes on the market.

"Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand. As inventories are drawn down, prices in many markets should go positive later this year," Yun said.

Copyright 2008 by United Press International.