Home sales dropped in February for the 10th month in a row, but there were signs the market might be picking up, real estate tracker CoreLogic reported Wednesday.
February sales were down 8.1 percent compared to the previous year, but that was not as severe as the last few months when sales dropped 10 percent to 22 percent. At the same time, the median home price for the month, $549,000, was up 2.6 percent in a year.
Chris Thornberg, economist and founding partner of Beacon Economics, said it was ridiculous to think home prices would not rebound with lowering interest rates and home inventory at historic lows.
“The market was going to move again, regardless,” he said. “It takes a big mess to cause home prices to fall. I don’t just mean a mess in the housing market. I mean an economic mess.”
After months of slowing sales, there are more homes on the market for potential buyers, said the Greater San Diego Association of Realtors. In February, there were 6,362 homes for sale, up from 4,636 at the same time last year and 4,415 in 2016. Still, February’s inventory was smaller than the recession when there were more than 9,000 homes for sale through much of 2009.
He said there will likely be an increase in sales in the typical buying seasons of spring and summer, but will be modest compared to the past few years and might not last as long.
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