Home sales drag in February

Triangle home sales dipped slightly in February compared to the previous year, ending the region's run of five consecutive months of strengthening sales.

There were 945 homes sold during February in Durham, Johnston, Orange and Wake counties, down less than 1 percent from February 2009, Triangle Multiple Listing Services data show.

Recording year-over-year increases is viewed as an important gauge of the housing market's health these days given how bad the first half of 2009 was.

"I think most everybody was probably hoping for a little bit better results in February this year," said Ross Rhudy, general manager of Ammons Pittman GMAC Real Estate in Raleigh.

Rhudy said the weather may have played a factor in the level of activity.

"We had more wintry weather here than we normally do, and that kind of brings things to a standstill in the real estate world," he said.

The average sales price of homes sold in February was $226,400 - down 5 percent compared with the previous year. The amount of time that a home spent on the market before it sold decreased from 106 days to 102 days.

Real estate professionals hope activity picks up this spring as buyers rush to take advantage of historically low interest rates and soon-to-expire federal tax credits.

Federal tax credits allow eligible first-time buyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. Repeat buyers who have lived in their houses at least five years are eligible also for a tax credit of as much as $6,500.

The deadlines for both tax credits are April 30 to put a home under contract and June 30 to close.

The February numbers did include signs that more people are actively looking. Monthly showings jumped 15 percent in February compared to the previous year, and pending sales were up 8 percent.

"That's kind of what we've been hearing the agents talk about," Rhudy said. "Buyers are out there looking. They're checking out what's out there, and they're considering their options."