February New Home Sales Rise

As reported by CNNMoney.com - "New home sales in surprise rebound":

Sales of newly constructed homes unexpectedly rose in February, rebounding nearly 5% after sinking to the lowest level on record in January, according to a government report released Wednesday.

The U.S. Census Bureau reported that new home sales rose 4.7% to a seasonally adjusted annual rate of 337,000 in February from a revised 322,000 in January. The was the first increase since July, and it comes after sales tumbled to all-time lows in recent months.

Economists were expecting a sales rate of 300,000, according to consensus estimates compiled by Briefing.com.

Median sales price tanks year over year:

The report also showed that the median sales price of new houses sold in February was $200,900, down 18% from $245,300 a year ago.

Inventory levels:

The estimated number of new homes for sale at the end of February was a seasonally adjusted 330,000. At the current sales pace, it would take more than a year to sell through that number of new homes, according to the report.

...

On Monday the National Association of Realtors said that existing home sales rose 5.1% in February to a seasonally adjusted annual rate of 4.72 million units from a rate of 4.49 million in January.

Last week, the Commerce Department reported that initial construction of new homes surged 22% in February to a seasonally adjusted annual rate of 583,000, up from a revised 477,000 in January. It was the first time housing starts increased since June, when they rose 11%.

It's Spring, the weather is improving, and so are the housing numbers. Will this be a fleeting Spring bump or have we found a bottom in many markets?

February Existing Home Sales Rise While Home Prices Tank

As reported my CNNMoney.com - "Existing home sales spike 5%":

Sales of existing homes unexpectedly rose in February, recovering from a sharp drop in the previous month, according to an industry report released Monday.

The National Association of Realtors said that existing home sales rose last month to a seasonally adjusted annual rate of 4.72 million million units, up 5.1% from a rate of 4.49 million in January. February sales were down nearly 5% from year ago levels.

Who's buying?

The report said first-time buyers made up half of all purchases in February, and that sales of distressed properties accounted for about 45% of all transactions.

Where the sales were HOT?

Sales were unexpectedly strong in the West, with activity increasing more than 30% over last year.

Median home price drops:

The national median existing-home price was $165,400 in February, down 15.5% from last year, when the median price was $195,800.

Inventory levels:

Meanwhile, the total number of existing homes on the market at the end of February rose 5.2% to 3.80 million units. At the current sales pace, it would take an estimated 9.7 months to sell down that inventory of properties.

The report also said the total number of homes for sale has steadily declined over the past six months from a record level last July.

Falling home prices have been translating into increased sales activity and trending lower inventory levels. Couple that with 4-5% interest rates and home buyer credits .... bargains and good deals abound.