Existing Home Sales Move Higher

A jump back higher for single-family homes leads a positive existing home sales report for February. Total sales rose 3.0 percent to a higher-than-expected 5.540 million annualized rate to lift the year-on-year rate out of the negative column to plus 1.1 percent.

Sales of single-family homes rose 4.2 percent in the month to a 4.960 million rate with this yearly reading at plus 1.8 percent. This offsets continued weakness for condo sales which fell a sharp 6.5 percent in the month for a year-on-year minus 4.9 percent.

But the message of today's report is definitely positive including a 4.6 percent rise in supply to 1.590 million. Yet on a sales basis supply, reflecting February's strong gain in sales, is unchanged at a very thin 3.4 months.

The gain in sales didn't come at the expense of prices where the median rose 0.4 percent to $241,000 for a 5.9 percent increase from this time last year. Regional sales data show monthly gains for the West and South, the two leading regions for resales, and declines for the Midwest and Northeast.

Home sales are struggling to move higher, held down by lack of choice for buyers and also high prices. Rising mortgage rates are another negative factor. New home sales will be posted on Friday with a gain expected.