Existing Home Sales Show February Uptick
The existing-home sales market experienced an upward trend in February, according to a report from the National Association of REALTORS®. The data reveals an increase in completed transactions nationwide, signaling a potential shift in market dynamics across different regions.
Sales Volume Sees Monthly Increase
Total existing-home sales, encompassing single-family homes, townhomes, condominiums, and co-ops, reached a seasonally adjusted annual rate of 4.26 million in February. This represents a notable 4.2% increase compared to the sales rate of 4.09 million in January. However, when compared to February of the previous year, sales showed a slight decrease of 1.2%.
Inventory Levels and Pricing
The total housing inventory at the end of February stood at 1.24 million units, marking a 5.1% rise from January and a significant 17% increase compared to the 1.06 million units available in February 2024. The unsold inventory represents a 3.5-month supply at the current sales pace, consistent with January but up from the 3.0-month supply a year prior. The median existing-home price for all housing types in February was $398,400, indicating a 3.8% increase from the $383,800 median price in February of the previous year, with all four major U.S. regions experiencing price growth.
Regional Sales Performance
Examining regional performance, the Northeast saw a 2.0% decrease in existing-home sales from January, while the Midwest remained stable. The South experienced a 4.4% increase, and the West witnessed a substantial 13.3% jump in sales during February. Year-over-year, the Northeast and Midwest recorded sales growth, the West remained at the same level, and the South experienced a decline.
Market Factors and Buyer Activity
Properties remained on the market for an average of 42 days in February, slightly longer than the 41 days in January and 38 days in February 2024. First-time buyers accounted for 31% of sales in February, an increase from 28% in January and 26% in the previous year. Cash sales made up 32% of transactions, up from January but down from February 2024.
