Existing-home sales rebounded in February, offering a glimmer of momentum in a housing market still grappling with affordability pressures and high mortgage rates. Sales rose 4.2% from January to a seasonally adjusted annual rate of 4.26 million, according to the latest data from the National Association of Realtors (NAR).
The pace remained below last year’s levels — down 1.2% from February 2024 — but economists noted signs of gradual recovery, spurred by slightly improved inventory and steadier borrowing costs.
“Homebuyers are slowly entering the market,” stated Lawrence Yun, chief economist at NAR. “More inventory and choices are releasing pent-up housing demand.”
The number of homes on the market rose 5.1% from January and stood 17% higher than a year ago. Still, with just 1.24 million units available nationwide, supply remains tight. At the current sales pace, that inventory represents a 3.5-month supply, unchanged from January but up from 3.0 months a year earlier.
Meanwhile, home prices continued their upward march. The median existing-home sales price hit $398,400 in February, up 3.8% year-over-year and marking the 20th straight month of annual gains. All four U.S. regions posted price increases, with the Northeast leading the way with a 10.4% jump to $464,300.
Rising home values, Yun noted, have added nearly $1.3 trillion in equity for American homeowners over the past year.
First-time buyers accounted for 31% of February’s transactions, up from 28% in January and 26% in February 2024, indicating some fresh activity among new entrants to the market. Cash buyers accounted for nearly one-third of all sales.
Regionally, the West posted the strongest monthly growth, with sales jumping 13.3% to an annual pace of 850,000, matching the region’s level from a year ago. The South also saw gains, up 4.4% from January, though that region was still down 4% from 2024. Sales in the Northeast declined 2.0% month-over-month but rose year-over-year, while the Midwest held steady.
Single-family homes led the recovery, with a 5.7% monthly increase in sales. Condo and co-op transactions, however, declined sharply, falling nearly 10% from both the previous month and year.
Mortgage rates have largely hovered in recent weeks. The average 30-year fixed rate mortgage stood at 6.67% as of March 20, nudging up successively from 6.65% and 6.63% in the two weeks prior, according to Freddie Mac. That's a modest rate decline from this same time in 2024 and, as far as those recent nudging increases, follows on seven consecutive weeks in 2025 of declines — but it's still well above pre-pandemic norms.
Despite persistent affordability challenges, NAR’s Yun suggested February’s gains may signal a shift. “The momentum for home sales is flashing encouraging signs,” Yun observed.
