January current home sales drop 0.6 percent

WASHINGTON (AP) — Sales of current homes fell for a third straight month in February, pushing sales down to the lowest level since last July.

There is concern that the fragile housing rebound could falter, making it harder for the overall economy to recover.

The National Association of Realtors said today that sales of previously occupied homes dropped 0.6 percent in February to a seasonally adjusted annual rate of 5.02 million.

The weakness in sales depressed prices with the median home price dropping almost 2 percent from a year ago to $165,100.

But sales activity varied across the country. In the Midwest, sales jumped almost 9 percent, and were up more than 2 percent in the Northeast. In the South, sales fell about 1 percent, and were down almost 5 percent in the West.

Nationally, sales have been declining since November, despite the extension of tax credits for homebuyers. There is a $8,000 credit for first-time buyers and a $6,500 credit for current homeowners who have lived in their property for the past five years.