U.S. existing-home sales edged up in February from the previous month, evidence of a recovering property market, according to a report released Thursday.
The report Thursday from the National Association of Realtors was the latest sign of a housing recovery that has become a major positive force for the economy.
Existing home sales, which tally completed transactions for single-family houses, townhouses and condominiums, rose to a seasonally adjusted annual rate of 4.98 million last month from an upwardly revised 4.92 million in January, the National Association of Realtors (NAR) said in a report.
The level was 10.2 percent higher than the 4.52 million units registered in February 2012, NAR said.
It was the best month since November of 2009. But that early spike in sales was caused by a temporary $5,000 tax credit for home buyers in place at that time.
"The fundamentals that usually drive housing activity, such as job growth and interest rates, those are favorable, and they suggest that we should continue to advance," said Michael Moran, chief economist at Daiwa Capital Markets America Inc. in New York, who correctly forecast the February pace. Still, "the inventories are said to be tight in many markets, and that's holding sales back to a degree."
The current strength is due to improved fundamentals, including a drop in foreclosures and near record low mortgage rates. A decline in the nation's unemployment rate is also helping.
