NAR: Existing home sales in February rose 9.5%

Existing home sales saw the biggest monthly increase of the year nationwide, according to the NAR. The median price in the South was $354,200, up 4.1% from last year.

WASHINGTON – Existing home sales rose in February, according to the National Association of Realtors®. Among the four largest U.S. regions, sales jumped in the West, South and Midwest and were flat in the Northeast. Year-over-year, sales fell in all regions.

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

“Additional housing supply is helping to meet market demand,” said NAR Chief Economist Lawrence Yun. “Housing demand is steadily rising due to population and job growth, although the actual timing of purchases will be determined by prevailing mortgage rates and broader inventory options.”

Total housing inventory recorded at the end of February was 1.07 million units, up 5.9% from January and 10.3% from a year ago (970,000). Unsold inventory stands at 2.9 months of supply at the current sales rate, down from 3.0 months in January but up from 2.6 months in February 2023.

The median price for an existing home across all housing types in February was $384,500, up 5.7% from the previous year ($363,600). All four U.S. regions saw price increases.

Realtors® Confidence Index

According to the monthly Realtors® Confidence Index, properties typically stayed on the market for 38 days in February, compared to 36 days in January and 34 days in February 2023.

First-time buyers accounted for 26% of sales in February, down from 28% in January and 27% in February 2023. NAR’s 2023 Buyer and Seller Profile – released in November 20234 – found that the annual share of first-time buyers was 32%.

Cash sales accounted for 33% of transactions in February, compared to 32% in January and 28% a year ago.

Individual investors or second-home buyers, who account for many cash sales, purchased 21% of homes in February, compared to 17% in January and 18% in February 2023.

Distressed sales – foreclosures and short sales – accounted for 3% of sales in February, virtually unchanged from last month and the year before.

Mortgage interest rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.74% as of March 14. That's down from 6.88% the previous week but up from 6.60% a year ago.

Sales of single-family homes and apartments/co-ops

Single-family home sales rose to a seasonally adjusted annual rate of 3.97 million in February, up 10.3% from 3.6 million in January but down 2.7% from a year earlier. The median price of an existing single-family home was $388,700 in February, up 5.6% from February 2023.

At a seasonally adjusted annual rate of 410,000 units in February, existing condominium and co-op sales rose 2.5% from the previous month, but were down 8.9% from a year ago (450,000 units). The median price of existing homes was $344,000 in February, up 6.7% from a year ago ($322,400).

Regional breakdown

At 480,000 units, existing home sales in the Northeast were the same as January but down 7.7% from February 2023. This is the fourth consecutive month that home sales in the Northeast have recorded 480,000 units. The median price in the Northeast was $420,600, up 11.5% from a year ago.

In the Midwest, existing home sales jumped 8.4% from a month ago to an annual rate of 1.03 million in February, down 3.7% from a year earlier. The median price in the Midwest was $277,600, up 6.8% from February 2023.

Existing home sales in the South jumped 9.8% from January to an annual rate of 2.02 million in February, down 2.9% from a year earlier. The median price in the South was $354,200, up 4.1% from last year.

In the West, existing home sales jumped 16.4% from a month ago to an annual rate of 850,000 in February, down 1.2% from a year earlier. The median price in the West was $593,000, up 9.1% from February 2023.

“Due to inventory constraints, the Northeast was the region’s worst performer in February in home sales but the best performer in home prices,” Yun added. “More supply is clearly needed to help stabilize home prices and get more Americans moving into their next homes.”