Home Price Slump Helps to Spur Sales

Sales of existing homes posted the biggest jump in nearly three years in February, though sellers got the gains the way Detroit automakers spur sales - by cutting prices.

The National Association of Realtors said recently that home sales rose 3.9 percent last month to an annual rate of 6.7 million from a revised 6.4 million pace in January. It was the biggest percentage increase since March 2004.

Economists surveyed by Briefing.com had looked for a slowdown to a 6.3 million pace.  But even though sales rose from January, the pace was still down 3.6 percent from February 2006.

The report also showed the median price of a home sold in February fell 1.3 percent to $212,800 from a year earlier.  That was the seventh straight month that prices fell from a year earlier.  While home prices can swing widely from month to month, a drop in prices from a year earlier is relatively rare - and is sign of how weak the housing market has become.

There were 3.7 million homes for sale last month, up nearly 6 percent from the 3.5 million in January, and up by a quarter from a year earlier.  Many home buyers have an opportunity now that was only a dream a few years ago when the markets were all white hot.

Are you a potential home buyer wondering if now is the time to make your move?  Contact us, or leave us a comment below.

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