U.S. home sales fell by the most in a year in February as a perennial shortage of houses and double-digit price growth continued to squeeze first-time buyers out of the market.
Highlights
- Housing inventory drops 15.5% to 870,000 from year ago, down 155% from a year ago.
- Sales fell 7.2% to a seasonally adjusted annual rate of 6.02 million units last month.
- Mortgage rates are set to increase further after the Federal Reserve on Wednesday raised its policy interest rate by 25 basis points.
- House prices have increased on a year-on-year basis for a record 120 straight months.
- Housing shortage will reduce affordability, especially for first-time buyers, analysts say.
- The median existing house price increased 15% to $357,300 in February, according to the National Association of Realtors.