Home sales tumble, prices near 9-year low

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Home sales tumble, prices near 9-year low
WASHINGTON (Reuters) – Sales of previously owned U.S. homes plunged in February and prices hit their lowest level in nearly nine years, implying a housing market recovery was still a long way off.
The National Association of Realtors said on Monday sales fell 9.6 percent month over month to an annual rate of 4.88 million units,[link widoczny dla zalogowanych], snapping three straight months of gains. The percentage decline was the largest since July.
The weak sales were the latest evidence of the malaise in the housing sector and confirmed it would remain outside the strengthening and broadening economic recovery.
At February's sales pace,Buoyed by strikes, Libya rebels try to advance,[link widoczny dla zalogowanych], the supply of existing homes represented an 8.6 months' supply,[link widoczny dla zalogowanych], up from 7.5 in January. A supply of between six and seven months is generally considered ideal,Buoyed by strikes, Libya rebels try to advance,[link widoczny dla zalogowanych], with higher readings pointing to lower house prices.
"Inventory is still high,[link widoczny dla zalogowanych], about a third higher than it was pre-recession. We are not going to see any bounce back in new home sales until the inventory of existing home sales gets worked down," said Steve Blitz, a senior economist at ITG Investment Research in New York.