U.S. Existing-Home Sales Unexpectedly Rise In February

March 24, 2008 1:27 p.m. EST

Washington, D.C. (AHN) - U.S. existing home sales unexpectedly increased by 2.9 percent in February for the first time in seven months, whereas the prices fell, according to a report on Monday.

The purchases increased to 5.03 million annually, a 2.9 percent rise from January's unrevised 4.89 million annual rate, according to the National Association of Realtors in Washington.

Meanwhile, the median home price was $195,900 in February, which was registered lower by 8.2 percent from $213,500 in February 2007.

The median home price for the month of January was $199,700.

According to the market analysts, the current U.S. housing sector is gradually stabilizing but the effect may be temporary.

"It looks like this may be a temporary pause," Nigel Gault, chief U.S. economist at Global Insight Inc. in Lexington, Massachusetts, told Bloomberg. "The price declines have helped."

Sales of single-family homes climbed up by 2.8 percent to 4.47 million, while, the condos and co-ops advanced with 3.7 percent to a 560,000 rate.