Yes, all verbs, including stative ones like "need," can appear in the –ing form when used as present participles, functioning as adjectives, as in your example.
You are most likely thinking of verbs such as need, want, understand and know, which, when used as main verbs, usually don't appear in a progressive form. However, they are used as participles, as in these examples from Google:
"¢ The Dachshund Rescue Web Page maintains listings of Dachshunds needing homes, breed information and links to rescue contacts. ... www.drwp.net/needhome.html
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