Home PoliticsAmerica The Biden Effect: Home Sales Fall

Sales of existing homes in the United States fell 6.6 percent in February, the National Association of Realtors (NAR) said on Monday, as Biden’s non-sense tax talk and tightening inventory pushed prices up and kept buyers away.

Last month’s seasonally adjusted rate of 6.22 million annualized was worse than analysts expected, yet 9.1 percent higher than February 2020, after the US housing market boomed even as the Covid-19 pandemic caused wider economic malaise.

“Despite the drop in home sales for February — which I would attribute to historically-low inventory — the market is still outperforming pre-pandemic levels,” the association’s chief economist Lawrence Yun said.

Analysts said bad winter weather also made homebuyers delay purchases last month, but warned that the sector could be set for a slowdown in 2021 as rising prices chill demand.

“We look for the pace of existing home sales to drift lower over the course of the year as headwinds from a lack of supply and eroding affordability are partially offset by the tailwinds of still-strong demand, particularly from younger households, and a solid recovery,” Nancy Vanden Houten of Oxford Economics said.

Buyers jumped into the housing market in 2020 after the Federal Reserve cut its benchmark lending rate, sending mortgages to record lows.

Construction firms have struggled to keep up with demand, and the NAR said housing inventory as of the end of February was unchanged from January at 1.03 million units, 29.5 percent lower than a year ago.

The median existing home price had meanwhile risen 15.8 percent from February 2020 to $313,000, which Ian Shepherdson of Pantheon Macroeconomics warned was a sign that the housing market was no longer leading the broader US economy’s recovery from the Covid-19 downturn.

“The market is stalling, at best, though with sales at a high level, inventory still very low and prices rising rapidly,” he said.

The slowdown in sales was widespread, with the two regions most affected by the bad weather, the Midwest and Northeast, seeing the sharpest declines of 14.4 percent and 11.5 percent respectively. Sales in the South decreased 6.1 percent.

The West saw sales gain in February, rising 4.6 percent.

You may also like


Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.