Sales of previously owned homes fall 7.2% in January

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Sales of previously occupied homes took a stumble for the second consecutive month in January.

The National Assn. of Realtors in Washington said Friday that sales fell 7.2% to a seasonally adjusted annual rate of 5.05 million units in January. While a decline from the previous month, that was still 11.5% above the 4.53-million-unit level in January 2009.

It was the second report this week reflecting poor January sales figures. On Wednesday the Commerce Department reported that newly built homes took an unexpected 11.2% tumble, falling to a record low in January.

Lawrence Yun, chief economist of the Realtors group, said in a statement that the January drop reflected closings from deals struck during the slow holiday shopping season.

“Most of the completed deals in January were based on contracts in November and December. People who got into the market after the home buyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales,� he said. “Still, the latest monthly sales decline is not encouraging, and raises concern about the strength of a recovery.�

Prices held steady in January despite the sales drop. The median price for a previously owned home in the U.S. was $164,700 in January, unchanged from a year earlier, the Realtors group said. Foreclosure properties or other homes sold when the owner is in default accounted for 38% of sales last month.

-- Alejandro Lazo