Existing-home sales jumped in most of the U.S. this February, the National Association of Realtors (NAR) reported.
Total sales of single-family homes, townhomes, condominiums and co-ops bounced 9.5% from January to a seasonally adjusted annual rate of 4.38 million in February in the South, Midwest and West, remaining unchanged in the Northeast.
Sales declined 3.3% year over year from February 2023, however.
“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.”
A total of 1.07 million housing units were for sale at the end of this February, a 5.9% increase from January and a 10.3% increase over last year.
Meanwhile, home prices increased 5.7% from 2023, with all four U.S. regions posting price increases.
All-cash sales represented 33% of transactions in February, up from 32% in January and 28% in February 2023.
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% in February 2023.
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 but down 2.7% from the previous year. The median existing single-family home price was $388,700 in February, up 5.6% from February 2023.
The Northeast had a deficit in homes for sale in this time frame, which was clearly a factor in homes sales remaining unchanged.
“Due to inventory constraints, the Northeast was the regional underperformer in February home sales but the best performer in home prices,” Yun pointed out. “More supply is clearly needed to help stabilize home prices and get more Americans moving to their next residences.”
