US homes sales fell in February

Existing home sales in the US fell in February, following three consecutive month's worth of increases.

This is according to the latest data released by the National Association of Realtors (NAR), who noted that transactions dropped 9.6 per cent month-on-month and 2.8 per cent compared to the previous year.

"Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained," Lawrence Yun, NAR chief economist, said.

The industry expert warned that those looking to buy property in the US could expect recovery to be unsteady, especially as a result of the tighter lending market.

NAR added that the decrease in sales was accompanied by an increase in supply. Inventory rose 3.5 per cent to 3.49 million units.

Meanwhile, recent research from the University of Florida found that sales of single family homes and condominiums are increasing, as well as investments in land are increasing.

And speaking to Overseas Property Professional, the organisation forecast that 2011 will see a greater number of potential buyers making house purchases in the US.

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