Existing-Home Sales Accelerate

(Thumbnail courtesy of the National Association of Realtors)

Existing-home sales grew in February, the National Association of Realtors reported.

Total existing-home sales–completed transactions that include single-family homes, townhomes, condominiums and co-ops–progressed 4.2% from January to a seasonally adjusted annual rate of 4.26 million in February.

On a year-over-year basis, sales slid 1.2% (down from 4.31 million in February 2024).

“Home buyers are slowly entering the market,” NAR Chief Economist Lawrence Yun noted. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”

The report said total housing inventory at the end of February totaled 1.24 million units, up 5.1% from January and 17% from one year ago (1.06 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, identical to January and up from 3.0 months in February 2024.

“On a technical note, raw sales in February were down 5.2% from last year, which was a leap year with one extra day of business,” Yun added. “However, after adjusting for this effect, combined with the winter seasonal factors, the momentum for home sales is flashing encouraging signs.”

The median existing-home price for all housing types in February was $398,400, up 3.8% from one year ago, when it was $383,800. “Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners,” Yun said. “That means a gain of nearly $1.3 trillion in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values.”