In February, US existing home sales dropped unexpectedly. On a monthly basis, existing home sales fell by 0.9% M/M to a total level of 4.59 million, while the consensus was looking for an increase by 0.9% M/M. The previous figure was upwardly revised from 4.57 million to 4.63 million. Overall the outcome was very close to expectations. The details show that weakness was based in sales of singlefamily existing homes (-1.0% M/M), while sales of existing condos stabilized in February. Also regional details show a mixed picture as existing home sales dropped in the Northeast (-3.3% M/M) and West (-3.2% M/M), while they increased slightly in the Midwest (1.0% M/M) and South (0.6% M/M). The number of available homes for sale picked up from 2.33 million to 2.43 million and month’s supply increased from 6.0 to 6.4. The price data are encouraging as both median and average prices picked up in February. Although the data are slightly weaker than expected, the trend remains encouraging. Existing home sales are very gradually picking up led by sales of condo’s. The inventory picked up and will probably increase further as foreclosures will increase again.