Existing-home sales make a major jump in February, according to NAR

Existing-home sales climbed in February across most of the U.S., according to the National Association of Realtors. Among the four major U.S. regions, sales jumped in the West, South and Midwest and were unchanged in the Northeast. But year over year, sales declined in all regions.

Total existing-home sales — completed transactions that include single-family homes, townhomes, condominiums and co-ops — bounced 9.5 percent from January to a seasonally adjusted annual rate of 4.38 million in February. Year over year, sales slid 3.3 percent (down from 4.53 million in February 2023).

“Additional housing supply is helping to satisfy market demand,” said 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 registered at the end of February was 1.07 million units, up 5.9 percent from January and 10.3 percent from one year ago (970,000). 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 in February was $384,500, an increase of 5.7 percent from the prior year ($363,600). All four U.S. regions posted price increases.

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 were responsible for 26 percent of sales in February, down from 28 percent in January and 27 percent in February 2023. NAR’s 2023 Profile of Home Buyers and Sellers, released in November 2023, found that the annual share of first-time buyers was 32 percent.

All-cash sales accounted for 33 percent of transactions in February, up from 32 percent in January and 28 percent one year ago.

Individual investors or second-home buyers, who make up many cash sales, purchased 21 percent of homes in February, up from 17 percent in January and 18 percent in February 2023.

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.74 percent as of March 14. That’s down from 6.88 percent the prior week but up from 6.60 percent one year ago.