The report for February home sales has been released and the news is not good. Existing home sales across the country declined 7.1 percent or seasonally adjusted rate of 5.08 million homes. This is less than the 5.47 million that were sold in January. The good news is that the number of homes sold is still two percent higher year over year.
The biggest influence on the falling home sales is economic fears. Home buyers are nervous because home prices and rent is outpacing wage increases. It’s also harder for some buyers to find the property they want at an affordable price. The economy is also a factor as some buyers aren’t sure it’s healthy enough for them to purchase a home, especially for renters.
“Accelerating home prices and the perceived difficulty in obtaining a mortgage appears to be tugging at the confidence of renters,” said Lawrence Yun, National Association of Realtors chief economist.
In Alabama, many cities are seeing a rise in home sales for February. However, the number of home buyers that feel it is a bad time to buy a house is continuing to trend upwards. In Florida, home prices continue to rise and that is keeping some buyers on the sidelines. The number of entry level homes is also decreasing while demand for higher end homes is increasing.
Read more on the realtors association’s website.