Home sales falter in February

It's not just my imagination. February seemed slower than the previous months, perhaps due to Spring Break.  Nationwide, home sales dropped 9.6% in February after three months of gains in a row.

As Lawrence Yun, the economist for the NAR, puts it:

Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers.

A high number of resales were for cash. Home buyers have been finding it hard to qualify for mortgages. And even when they do, they can't always get to closing because appraisers have to include distress properties as comparables, even if the subject property is in perfect condition. This is according to updated underwriting guidelines.

The San Antonio metro bucked the trend to some extent. There were 155 more sales in February than in January. But 173 homes came on the market that month to balance out the sales, bringing the supply up from 7.7 to 7.9 months' worth.

That means it is still a buyer's market, even in San Antonio.

So, buyers, get your approval letters from your loan officers and come check out my listings.