January did not set the precedent for February.
We saw home sales hit their fastest pace in 6 months in January only to see home purchases take a 7.1% dip in the February, more than doubling the dip of expectations.
If is wasn’t for western states, it would’ve been much worse.
Northeast- Sales Took a 17.1% Dip
Midwest – Down 13.8%
And then Larry Yun tries to explain, it was the weather, the stock drop, and bubbly home prices and weakness in the economy
“Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest,” he said. “The lull in contract signings in January from the largeEast Coast blizzard, along with the slump in the stock market, may have played a role in February’s lack of closings. However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers.”
However, according to Yun, job growth continues to hum along at a robust pace, but there appears to be some uneasiness among households that the economy is losing some steam.This was evident in NAR’s latest quarterly HOME survey – released earlier this month – which revealed that fewer respondents believe the economy is improving, and a smaller share of renters said that now is a good time to buy a home.
“The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers,” says Yun.
Which is odd since President Obama said everything was awesome.