US residential sales volume slows in February
Posted on Friday, March 28, 2014 at 9:09:17 AM
Access to affordable residential financing is often one factor that drives up U.S. home sales, but even relatively low mortgage rates haven't been able to prevent a declining amount of homebuyer activity.
According to RealtyTrac, the sales pace for U.S. residential properties was slightly down month-over-month in February, although it was 7 percent higher compared to the same time in 2013. These figures included all single-family homes, condominiums and townhomes.
"Supply and demand have reached a bit of a standoff in this uneven real estate recovery," said Daren Blomquist, vice president at RealtyTrac. "The supply of distressed properties - which buyers and investors have come to rely on over the past few years - is evaporating quickly in most markets, but that dwindling supply is not being adequately replenished by non-distressed homeowners listing their homes or by new homes being built."
In addition, the National Association of Realtors reported that pending home sales, a metric based on contract signings, were also down month-over-month in February. However, NAR chief economist Lawrence Yun noted that the small changes in pending sales is more indicative of a stabilizing market than any negative trends.