Existing-home sales take a tumble

Existing-home sales fell from their six-month peak in February to a seasonally adjusted annual rate of 5.08 million, down 7.1% from January.

Though sales were still 2.2% above last year's levels, the low turnout can be traced to a low housing supply and affordability issues.

The median existing-home price was $210,800, up 4.4% from February 2015 ($201,900).

Additionally, total housing inventory at the end of February increased 3.3% to 1.88 million existing homes available for sale, but is still 1.1% lower than a year ago.

"Sales took a considerable step back in most of the country last month, and especially in the Northeast and Midwest," said National Association of Realtors chief economist Lawrence Yun. "The lull in contract signings in January from the large East Coast blizzard, along with the slump in the stock market, may have played a role in February's lack of closings. However, the main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers." 

Yun added that homeowners are anxious about the economy, despite the continued growth in the job market. NAR's latest quarterly HOME survey found that fewer respondents believe the economy is improving, and that a smaller percentage of renters think it's a good time to buy a home.

"The overall demand for buying is still solid entering the busy spring season, but home prices and rents outpacing wages and anxiety about the health of the economy are holding back a segment of would-be buyers," says Yun.

For the single-family market, home sales were down 7.2% to a seasonally adjusted annual rate of 4.51 million from 4.86 million in January, though they were 2.0% higher than last year's rate. The median single-family home price was $212,300, up 4.3% year-over-year.

The declines occurred in all four regions of the U.S., but they were led by the Northeast (down 17.1%) and Midwest (down 13.8%).