This may be due to the unseasonably good weather during the month of February. Eighty-nine units were sold this month. Though down from February 2000, this is still a high figure for Humboldt County during this time of year. This is related to the Federal Reserve's recent action which lowered interest rates an additional one-half percent. Lower mortgage rates continue to support strong home sales, offsetting declines in other sectors of the economy.
Some economists claim that a healthy housing market can prevent an overall economic downturn.
National existing and new home sales remain strong. While down slighty from January, February's figures are near the peaks reached last year. Strong demand and limited inventory have contributed to the continued growth of home prices. Nationally, prices are rising at a 4 percent rate annually. In the Bay Area this trend is even more pronounced, with prices up 18 percent since February last year.