There was a 2.9 per cent pick up in existing home sales in February. In all, 5,030,000 existing homes were sold in the year to February, making it the best month for sales since October.
The inventory of sales fell too, so that there are now 4,034,000 existing homes for sale in the US.
The trouble is, the inventory levels still amount to 9.6 months of supply – way too high.
The median price of existing homes fell by 2 per cent in the month, to $195,900. The annual fall in prices was 8.2 per cent, the biggest annual fall ever recorded.
But actually, things are worse than that.
The median price is now 15 per cent down from the peak hit last June. With inventory levels so high, it seems reasonable to assume prices will fall even further. If prices continue to fall by the $4,000 seen from January to February, for four more months, then by June, US median prices would have fallen by $51,000, or 26 per cent.
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