January home sales fall 7.2 percent
WASHINGTON (AP) — Sales of previously occupied homes took a large drop for the second straight month in January, falling to the lowest level since summer. It was another sign the housing market's recovery is faltering.
The National Association of Realtors said sales fell 7.2 percent to a seasonally adjusted annual rate of 5.05 million from a downwardly revised pace of 5.44 million in December.
The results, the weakest since June, were far worse than forecast. Economists expected a slight increase to a rate of 5.5 million.
The report "is certainly not good," said Lawrence Yun, the trade group's chief economist.
Sales declined throughout the country, falling the most — nearly 11 percent — in the Northeast. Sales fell by about 7 percent in the South and Midwest and by more than 5 percent in the West.
Potential buyers have left the market this winter because the deadline for a tax credit for first-time buyers was extended. It had been set to expire on Nov. 30, but Congress extended the deadline until April 30 and expanded it to existing homeowners who move.
"We hope that there will be another surge come late spring" as the new deadline nears, Yun said.
The median sales price was $164,700, unchanged from a year earlier and down 3.4 percent from December.