The National Association of Realtors said on Monday that existing home sales dropped 6.6% to a seasonally adjusted annual rate of 6.22 million units last month.
Warmer temperatures, an acceleration in the pace of COVID-19 vaccinations and massive fiscal stimulus are expected to spur a sharp rebound in activity in March.
The National Association of Realtors (NAR) said on Thursday its Pending Home Sales Index, based on contracts signed last month, dropped 2.8% last month to 122.8.
Monthly contracts declined in the Midwest, Northeast and West. They inched up in the South.
Home resales, which account for the bulk of US home sales, surged 23.7% on a year-on-year basis.
The inventory crunch could ease as builders step up construction, though they are facing challenges from record lumber prices as well as shortages of land and labor.