The volume of sales of previously owned homes in the U.S. fell sharply in the second month of the year despite home prices slipping to the lowest level in the better part of a decade, according to Reuters. On Monday, the National Association of Realtors reported that existing home sales dropped 9.6% in February from the previous month, bring the annual rate to 4.88 million units and ending a three-month streak of gains. The drop was the largest since July and defied economists’ forecast for a 4% decrease in sales.
The steep monthly decline in home sales contributed to a 2.8% year-over-year contraction, despite low home prices and improving credit availability. The slumping housing market has also seen home prices continuing to fall, dropping 5.2% year-over-year to $156,100 in February, which is the lowest level since April 2002.
