I guess by now the secret is out that the U.S. housing market is a little soft. The February report isn’t going to change anybody’s mind. The median sales price fell another 2% (actually 1.9%, but who’s counting) to $195,900, 8.2% lower than a year ago. Prices fell in all 4 regions of the country. There were 2 positive signs; a slight increase in the number of transactions from 4.89 million to 5.03 million homes, and a reduction in the inventory of homes for sale from 4.16 million to 4.03 million homes. You can see the full report by clicking here, Existing Home Sales, February, 2008.
There are also signs that mortgage-backed securities are beginning to trade again. That’s what we need to fix the problem. Don’t hyperventilate yet but this report is OK, Dog.