Sales of previously occupied homes in the United States slowed last month as rising prices and a shortage of homes for sale held some potential buyers on the sidelines.

The National Association of Realtors said Monday that sales of existing homes in February fell 6.6% from January to a seasonally adjusted rate of 6.22 million units annualized. Sales were up 9.1% from February last year, before the pandemic wreaked havoc on the economy and temporarily stalled home sales last spring.

Harsh winter conditions across much of the United States were likely a factor in the slowdown, which marked the first monthly sales decline in two months. However, a recent mortgage rate hike has not, as February sales largely reflect contracts signed weeks before the rate hike.

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On a regional basis, sales declined in the Northeast, Midwest and South, but increased in the West. Despite this, home prices continued to climb, driven by sales of upscale homes. The report showed that the median US home price was $ 313,000 in February, up 15.8% from the previous year.

The burning housing market has left the number of properties available for sale at record highs, which has contributed to strong increases in home prices.

At the end of February, the stock of unsold homes stood at just 1.03 million properties for sale, down 29.5% from a year earlier, a record drop. Data from the Realtors Group on home inventory dates back to 1982.

At the current pace of sales, the home inventory at the end of February represents a 2-month supply, down from a 3.1-month supply a year earlier. Meanwhile, homes typically only stayed on the market for 20 days last month, the NAR said. That’s down from 21 days in January and 36 days in February of last year.

Highlighting how quickly homes were bought last month, 74% of homes sold in February had been on the market for less than a month, the NAR said.

The fact that homes are being bought so quickly and prices continue to climb, with many homes receiving multiple offers, implies that it was the lack of supply that was primarily responsible for the February sales decline, a said Lawrence Yun, chief economist of NAR.

“This is the reason why prices are going up,” said Lawrence Yun, chief economist of NAR. “The demand seems to be very strong, as evidenced by the days in the market which are so fast.”

The housing market has made a comeback since last summer after falling sharply in the spring when the coronavirus outbreak hit. Sales jumped last year to the highest level since 2006, at the height of the real estate boom.

Economists expect sales to remain strong this year, as more millennials seek homeownership and many Americans with the freedom to work remotely during the pandemic increasingly move to other states and buy homes.

Low mortgage rates remain a draw for many potential buyers, showing them some financial flexibility, although rates have risen in recent times.

The average 30-year benchmark loan rate rose above the 3% mark at the start of the month for the first time since July 2020. Last week it rose to 3.09%, although it still down from 3.65% a year ago, according to mortgage buyer Freddie Mac.

Yun expects mortgage rates to continue rising through the end of the year, possibly hitting an average rate of 3.5% on a 30-year fixed-rate mortgage by December. .

Yet the biggest barrier to home ownership for buyers will likely be the low inventory of homes on the market, which is already fueling stiff competition among buyers in the upcoming spring home buying season.

“In the next few months, perhaps, demand will pull back a bit given the recent rise in mortgage rates,” Yun said. “Affordability will be affected by rising mortgage rates. We need more supply to control price growth.