The US housing market hit an icy patch in February.
With inventory levels at “unshakably” low levels, and existing-home prices continuing to rise, the home shopper responded with fewer contract signings than the pacing of recent months.
US Existing-Home Sales finished February 2016 at a 5.08M SAAR* pace, down from January’s impressive 5.47M pace, but still 2.2% higher than February 2015.
As mentioned above, housing prices continued their gradual upward momentum. The median price of existing homes was nearly $211K in February, marking the 48th straight month of increasing prices in the market.
From Lawrence Yun, Chief NAR Economist:
… the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers. The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers.”
For more details on key housing metrics in your region visit Realtor.org.
*SAAR: Seasonally-Adjusted Annual Sales Rate.
Dave Eckstein is a Partner in the firm ESA & Company. He specializes in highly profitable market share growth for local businesses and gets a kick out of demonstrating a declining cost of customer acquisition. He plays baseball, but isn't that Dave Eckstein.