Existing U.S. Home Sales Fall for Third Month

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By Shobhana Chandra

Sales of existing U.S. homes fell in February for a third month, indicating a lack of jobs is hindering government efforts to revive demand.

The extension and expansion of a federal tax credit that helped stabilize housing in 2009 has yet to spark sales this year as hiring hasn’t materialized. Home Depot Inc. is among companies cutting prices to stimulate demand as the world’s largest economy recovers from the worst recession since the 1930s.

“It’s a fragile recovery, we are bouncing along the bottom,” said Scott Brown, chief economist at Raymond James & Associates, in St. Petersburg, Florida, who forecast a 5 million sales pace. “We ultimately need to see job growth to get a sustainable rebound.”

Stocks climbed after the report and Treasury securities dropped. The Standard & Poor’s 500 Index rose 0.2 percent to 1,168.47 at 10:31 a.m. in New York.

Existing U.S. Home Sales Fall for Third Month