Just call it a winter of discontent for the U.S. housing sector, as the season's blizzards weakened already sluggish demand. The result was a 0.6% drop in February's existing-home sales to a 5.02 million-unit annualized rate.
Existing home sales tumbled 7.2% in January, to a 5.05 million-unit annualized pace. Also, the inventory of homes for sale rose to a 7.8-month supply from 7.2 months in December. Can the extended tax credit start warming up sales?
The nearly year-long, positive trend in the U.S. housing sector ended 2009 on a sour note. Inventories also went in the wrong direction, as existing homes rose to a 7.2-month supply at the current sales pace, up from 6.5 months in November.
The upward trend in U.S. home sales continued as existing home sales jumped to a seasonally-adjusted annual rate of 6.54 million units. The greater than expected results were aided by attractive prices and the federal home-buyers tax credit.
