It seems like we’re all clinging desperately to any shred of good news these days.  The Dow is up 2%?  Have a party!  So when the National Association of Realtors reported that home sales were up across the nation in February -- which wasn’t expected -- we all jumped for joy.

“Existing-home sales increased in February, reversing losses in January” according to the NAR press release.  And while it’s true that “all real estate is local,” sometimes it’s important to step back and look at the bigger picture.  Some highlights from the NAR report:

·         Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 5.1 percent in February from January.

·         First-time buyers accounted for half of all home sales last month.

·         Sales activity concentrated in lower price ranges.

·         According to the NAR chief economist: “Our analysis shows that distressed homes [foreclosures] typically are selling for 20 percent less than the normal market price, and this naturally is drawing down the overall median price.”

·         The national median existing-home price for all housing types was $165,400 in February, down 15.5 percent from a year ago when the median was $195,800 and conditions were close to normal.

·         Home shopping activity has picked up with housing affordability at a record high.

·         On top of being incredibly affordable in terms of sales price, mortgage rates are still at record-lows.  Last month’s average mortgage rate was the second lowest since data collection began in 1971.

·         Total housing inventory at the end of February represents a 9.7-month supply at the current sales pace.

·         Single-family home sales rose 4.4 percent in February from January, but are 3.6 percent below February 2008. The median existing single-family home price was $164,600 in February, down 15.0 percent from a year ago.

·         Existing-home sales in the West increased 2.6 percent and remain 30.4 percent higher than a year ago. The median price in the West was $204,600, which is 30.3 percent below February 2008.

The best news of all?  A recovery in the West is much stronger than expected. “Strong sales gains in the West are led by California, where the median listing price is beginning to rise for the first time in three years,” said the NAR’s chief economist.

And the New York Times reported, “Economists and real-estate experts said the worst-hit parts of the country [certainly, including Arizona] looked like they were starting to emerge from the wreckage of the housing bust and a tide of foreclosures.”

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