U.S. home sales are gradually coming back. A mild winter and a stronger job market helped boost sales ahead of the crucial spring buying season.
The last two months made up the best winter for sales of previously occupied homes in five years, when the housing crisis began. And the sales pace in January was the highest since May 2010, the last month that buyers could qualify for a federal home-buying tax credit.
The last two months made up the best winter for sales of previously occupied homes in five years, when the housing crisis began. And the sales pace in January was the highest since May 2010, the last month that buyers could qualify for a federal home-buying tax credit.
February sales slipped only slightly from January to a seasonally adjusted 4.59 million, the National Assn. of Realtors said Wednesday. That's 13% higher than the sales pace last July and just below the revised 4.63 million in January.
Ian Shepherdson, chief U.S. economist at High Frequency Economics, said the lower February numbers "should not detract from the key point, which is that sales are trending upward."
The pace remains far below the 6 million that economists equate with healthy markets. And the number of first-time buyers, who are crucial to a housing recovery, continues to lag behind normal levels, while foreclosures remain high.
Still, Chris Jones, an economist at TD Economics, said that the "economic environment is ripe for home sales to keep gaining pace."
The median sale price of homes rose for the first time in four months in February, to $156,600. And the supply of homes on the market increased more than 4% in February to 2.43 million, which could signal that more homeowners became confident in the housing market.
There have been other signs of improvement in the depressed housing market.
Home builders have grown more confident in the last six months after seeing more people express interest in buying. In February, they requested the most permits to build homes since October 2008.
Mortgage rates are near record lows. And the supply of homes fell in January to its lowest level in seven years.
But sales among first-time buyers, who are crucial to a housing recovery, fell slightly last month to 32% of all purchases. That's down from 33% in January. In healthy markets, first-time buyers make up at least 40%.
Homes at risk of foreclosure made up 34% of sales, down only slightly from 35% in January. In more stable markets, foreclosures make up less than 10% of sales.
http://www.latimes.com/business/la-fi-nar-home-sales-20120321,0,6097097.story
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