U.S. Home Sales Dropped 6.6% as Supply Shrank

Sales of previously owned homes dropped in February, according to the National Association of Realtors.

Total existing-home sales dropped 6.6 percent from January to a seasonally-adjusted annual rate of 6.22 million, the National Association of Realtors said Monday. This followed two months of higher sales.

Despite the February retreat, home sales were up 9.1 percent compared with a year ago.

The supply of homes on the market fell 29.5 percent year-over-year, the largest ever annual decline. At the current sales pace it would take two months to sell available inventory, a very low level of homes for sale.

Home prices continued to climb in February. The median price of homes sold rose 15.8 percent compared with a year prior, to $313,000. That is the highest price point for February on record.

Sales of homes priced above $1 million were 81 percent higher compared with a year ago. Low end homes, priced between $100,000 and $250,0000, fell 11 percent.

Existing home sales are measured at closing, so the February figures largely reflect purchases that went under contract in January or December.

Sales were down on a monthly basis in the Northeast, the South, and the Midwest. Sales were up 4.6 percent in the West. All areas are up year-0ver-year.