NAR is reporting slipped 0.6 percent nationally to a seasonally adjusted annual rate of 5.02 million units in February from 5.05 million in January.

Highlights of the report:

• 7% higher than February 2009
• Weather affected closing schedules
• Housing inventory rose 9.5% to 3.59 million units or 8.6 months of supply
• 26% of transactions were cash purchases
• Distressed sales made up 35% of transactions
• Median house prices fell 1.8% to $165,100.
• First time homebuyers made up 42% of transactions.
• Northeast rose 2.4%
• Midwest rose 2.8%
• South retraced 1.1%
• West dropped 4.7%

Home sales surged on the back of a $8,000 tax credit for first-time buyers, but have faltered 3 months in a row. This raises worries that the housing market may be in for a rough few years once the tax credit ends and interest rates begin rising due to the government plan to stop buying mortgages on the secondary market at teh end of March. The overall debt load now on the government balance sheet will result in higher taxes dropping the disposable income consumers use to buy bigger houses or vacation properties.

This data shows that the people who need housing are buying it along with investors looking for great deals. Current homeowners have not been inspired to use the governments new $6500 tax credit to purchase another house. That may be a direct result of the fact that 25% of houses are now worth less than their mortgage balance, so they cant sell their houses.

www.SellMyHouse.com

Staff Writter

Home Prices · Pending Home Sales · sell my house · sellmyhouse.com