Existing-home sales soar by 14.5% in February

After sliding for 12 consecutive months, existing-home sales rebounded in February.

Total existing-home sales jumped ahead 14.5% from January to a seasonally adjusted annual rate of 4.58 million in February, the National Association of Realtors reported this morning. On a year-over-year basis, sales are down 22.6% compared to 5.92 million in February 2022.

Existing-home sales include completed transactions of single-family homes, townhomes, condos, and co-ops.

“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” said NAR Chief Economist Lawrence Yun. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

Single-family home sales soared to a seasonally adjusted annual rate of 4.14 million in February, up 15.3% from 3.59 million in January but down 21.4% from the previous year. 

In the meantime, housing inventory on the market remains at a low level.

“Inventory levels are still at historic lows,” Yun said. “Consequently, multiple offers are returning on a good number of properties.”

Key takeaways from the NAR:

• The median existing-home price for all housing types in January was $363,000, a decline of 0.2% from February 2022 ($363,700).
• February results end a streak of 131 consecutive months of year-over-year increases, the longest on record.
• Prices climbed in the Midwest and South yet waned in the Northeast and West. 
• The median existing single-family home price was $367,500 in February, down 0.7% from February 2022.
• Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022. 
• About 57% of homes sold in February were on the market for less than a month.
• Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). 
• Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.

Here’s how existing-home sales break down on a regional basis:

• Existing-home sales in the Northeast improved 4% from January to an annual rate of 520,000 in February, down 25.7% from February 2022. The median price in the Northeast was $366,100, down 4.5% from the previous year.
• In the Midwest, existing-home sales grew 13.5% from the previous month to an annual rate of 1.09 million in February, declining 18.7% from one year ago. The median price in the Midwest was $261,200, up 5.0% from February 2022.
• Existing-home sales in the South rebounded 15.9% in February from January to an annual rate of 2.11 million, a 21.3% decrease from the prior year. The median price in the South was $342,000, an increase of 2.7% from one year ago.
• In the West, existing-home sales rocketed 19.4% in February from the prior month to an annual rate of 860,000, down 28.3% from the previous year. The median price in the West was $541,100, down 5.6% from February 2022.