United States: House Sales Rising Strongly But Prices Lower Than A Year Ago

House sales rose strongly in the United States of America in February to reach the highest level since April 2006, according to the National Association of Realtors.

The average price for an existing-home for all housing types was $212,800 (£108,570) in February, down 1.3 percent from February 2006 when it was $215,700 (£110,050).

Total existing-home sales rose almost four percent, the biggest monthly rise in three years. David Lereah, NAR’s chief economist, said the strong gain was a surprise.

“Some of the rise in home sales may be from mild weather that brought out shoppers in December, but fundamentals have improved in the housing market and buyers see a window now with historically-low mortgage interest rates and competitive pricing by sellers.

“Even so, winter storms last month discouraged shopping, and buyers were chilled with the third coldest February on record. These unusual weather patterns mean home sales that close in March may decline before rebounding later this spring.”

NAR President Pat Vredevoogd Combs said the median home price currently is distorted.

“Over the last year, we’ve seen declining sales in many high-cost areas but rising activity in lower cost markets,” she said.

“This change in the geographic composition of sales means we aren’t getting apples-to-apples comparisons in median home prices from a year ago.

“What’s really happening is probably somewhere in between the different measures, but home prices are soft – a year ago we were still seeing bidding pressures and double-digit price growth. Overall, home prices should rise slowly this year, and many buyers have an opportunity now that was only a dream during the five-year boom.”

Average House Prices In U.S. Regions

Northeast United States: $265,900 (£135,660) — down 1.4 percent from February 2006.

Midwest United States: $157,000 (£80,100) — down 1.3 percent from February 2006.

South United States: $175,900 (£89,740) — down 2.9 percent from February 2006.

West United States: $337,100 (£171,990) — up 2.2 percent from February 2006.