Home demand took a step forward in February. But oversupply remains a problem.
Sales of existing homes dipped in February to an annualized rate of 4.59 million. But the drop reflected an upward revision to January sales, rather than a sign of weakness. Compared to a year ago, resales were up 8.8%.
The uptrend in sales over time has whittled down the number of homes for sale. According to the National Association of Realtors, the inventory of homes for sale is equal to a 6.4 months’ supply at the current sales pace, an improvement from 8.6 months a year ago.
