Sales of previously owned homes rose 1.7 percent in February, according to new numbers from the National Association of Realtors. The gains were modest and included all regions but the Northeast, where sales fell 6 percent from the month before. Dr. Lawrence Yun, NAR’s chief economist, says buyer demand has been muted despite recent affordability gains. “Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains,” Yun said. “Inventory is growing, but sluggishly. If demand picks up notably in the coming months and outpaces supply growth, home prices will inevitably rise.” Spring is typically the start of the housing market’s hottest season and any boost in buyer demand – without a similar increase in the number of homes for sale – could result in rising prices. That makes early spring the best time for buyers hoping to take advantage of improved conditions before the spring rush. (source)
