Existing-Home Sales Jump 9.5% in February

(Illustration courtesy of the National Association of Realtors)

Existing-home sales jumped 9.5% in February to a seasonally adjusted annual rate of 4.38 million–the largest monthly increase since February 2023–the National Association of Realtors reported.

Total existing-home sales–completed transactions that include single-family homes, townhomes, condominiums and co-ops-increased significantly from January but on a year-over-year basis sales slid 3.3%, NAR’s latest existing-home sales report said.

Among the four major U.S. regions, sales jumped in the West, South and Midwest, and were unchanged in the Northeast. Year-over-year, sales declined in all regions.

“Additional housing supply is helping to satisfy market demand,” NAR Chief Economist Lawrence Yun said. “Housing demand has been on a steady rise due to population and job growth, though the actual timing of purchases will be determined by prevailing mortgage rates and wider inventory choices.”

The report said total housing inventory at the end of February was 1.07 million units, up 5.9% from January and up 10.3% from one year ago. Unsold inventory sits at a 2.9-month supply at the current sales pace, down from 3.0 months in January but up from 2.6 months in February 2023.

The median existing-home price for all housing types increased 5.7% to $384,500 in February from the prior year. All four U.S. regions posted price increases, the report said. All-cash sales accounted for 33% of transactions in February, up from 32% in January and 28% one year ago. Individual investors or second-home buyers, who make up many cash sales, purchased 21% of homes in February, up from 17% in January and 18% in February 2023.