Existing Homes Sales
Existing-Home Sales Post Biggest Rise in Three
Years
By Jeff Bater
From
The Wall Street Journal Online
U.S.
existing-home sales unexpectedly climbed in February, but subprime-market
woes could chill demand farther down the road.
Home resales
rose to a 6.69 million annual rate, a 3.9% increase from January's revised
6.44 million annual pace, the National Association of Realtors said
Friday. January's rate was originally estimated at 6.46 million.
The median
home price was $212,800 in February, compared with a revised $210,900 in
January and a revised $215,700 in February 2006.
NAR chief
economist David Lereah said some of the rise might have been due to mild
weather. "But fundamentals have improved in the housing market," he said.
The February
resales level was above Wall Street expectations of a 6.33 million sales
rate for previously owned homes.
Delinquency
rates for subprime mortgage loans rose at the end of last year. Wall
Street is worried tighter lending standards for borrowers with
less-than-sterling credit could slow home sales in the future.
Mr. Lereah
predicts subprime problems could cost between 100,000 and 250,000 annual
sales of new and existing homes over the next couple years. "Will it
affect the housing market? Yes," he said. "But it's not going to lead to
an economic recession."
Inventories of
homes were up 5.9% at the end of February to 3.75 million available for
sale, which represented a 6.7-month supply at the current sales pace.
There was a 6.6-month supply at the end of January.
Regionally,
existing-home sales were mixed. Sales rose 3.9% in the Midwest, 14.2% in
the Northeast, and 1.6% in the South. Demand in the West was flat.
