Existing-home sales posted the strongest monthly growth in a year, growing 9.5% to a seasonally adjusted annual rate of 4.38 million in February, according to the National Association of Realtors (NAR). On a year-over-year basis, existing-home sales—completed transactions including single-family homes, townhomes, condos, and co-ops—fell 3.3%.
“Additional housing supply is helping to satisfy market demand,” says NAR chief economist Lawrence Yun. “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.”
Total housing inventory increased 5.9% from January and 10.3% from February 2023 to 1.07 million units in February. Unsold inventory sits at a 2.9-month supply at the current sales pace, up from 2.6 months in February 2023.
The median existing-home price for all housing types in February was $384,500, an increase of 5.7% from the prior year.
Single-family home sales grew to a seasonally adjusted annual rate of 3.97 million in February, up 10.3% from 3.6 million in January. The February estimate is down 2.7% from 12 months ago. The median existing single-family price was $388,700 in February, up 5.6% from February 2023.
According to the monthly Realtors Confidence Index, properties typically remained on the market for 38 days in February, up from 36 days in January and 34 days in February 2023.
First-time buyers accounted for 26% of sales in February while all-cash sales represented 33% of transactions in February. 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% from last year.
Existing-home sales increased in three of the four major U.S. census regions in February compared to January. Sales were flat month over month in the Northeast, but were down 7.7% compared to February 2023.
In the Midwest, existing-home sales grew 8.4% from a month ago but declined 3.7% compared to February 2023. Existing-home sales in the South jumped 9.8% month over month, but fell 2.9% year over year. In the West, sales improved by 16.4% in February from the prior month, but remained 1.2% below February 2023 levels.
“Due to inventory constraints, the Northeast was the regional underperformer in February home sales but the best performer in home prices,” Yun says. “More supply is clearly needed to help stabilize home prices and get more Americans moving to their next residences.”
