February existing-home sales jump to largest increase in 12 months.
Despite an upswing in mortgage rates over the month, February saw the biggest increase in existing-home sales in the last year, according to the latest report from the National Association of Realtors® (NAR). Nationwide, existing-home sales were up 9.5% month-over-month. Three of the four regions saw home sales rise, while the Northeast held steady from the month before.
"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."
The number of homes for sale increased in February
For the second month in a row, the number of homes for sale, otherwise known as housing inventory, is going up. There were 1.07 million units for sale in February, up 5.9% from January and 10.3% from February of 2023. That is a 2.9-month supply of homes at the current sales pace, though things may pick up as the weather warms up.
Good news for first-time homebuyers—more homes on the market can make it easier to find what they’re looking for while cutting down on bidding wars. This increased inventory could also have an effect on home prices, helping them moderate their growth. Here’s the latest home price trends:
Month | Median existing-home price | Month-over-month | Year-over-year |
$363,000 | Up 1.1% | Down 0.2% | |
$375,700 | Up 3.5% | Down 0.9% | |
$388,800 | Up 3.5% | Down 1.7% | |
$396,100 | Up 1.9% | Down 3.1% | |
$410,200 | Up 3.6% | Down 0.9% | |
$406,700 | Down 0.9% | Up 1.9% | |
$407,100 | Up 0.1% | Up 3.9% | |
$394,300 | Down 3.1% | Up 2.8% | |
$391,800 | Down 0.6% | Up 3.4% | |
$387,600 | Down 1.1% | Up 4.0% | |
$382,600 | Down 1.3% | Up 4.4% | |
$379,100 | Down 0.9% | Up 5.1% | |
February | $384,500 | Up 1.4% | Up 5.7% |
Of course, home prices aren’t the same in every part of the country. Find out where home prices are cooling, and where they’re going up.
Good news across the country
Home purchasing was up throughout the country, with just the Northeast avoiding positive growth. "Due to inventory constraints, the Northeast was the regional underperformer in February 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 to their next residences."
- Northeast: Unchanged at 0.0%, an annual rate of 480,000, down 7.7% from February 2023
- Midwest: Up 8.4% to an annual rate of 1,030,000, down 3.7% from February 2023
- South: Up 9.8% to an annual rate of 2,020,000, down 2.9% from February 2023
- West: Up 16.4% with an annual rate of 850,000, down 1.2% from February 2023
First-time homebuyers were responsible for 26% of sales in February, down from 28% in January. All-cash sales made up 33% of transactions in February, up from 32% the month before. These are the markings of a competitive market, which is why PowerBid Approval can help you compete with cash.
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