Existing-home sales were at a seasonally adjusted annual rate of 4.38 million in February, an increase of 9.5% compared with January but down 3.3% compared with February 2023, according to the National Association of Realtors (NAR).
It was the largest monthly increase since February 2023.
Helping to boost existing-home sales in February was that inventory increased 1.07 million by the end of the month – up 5.9% compared with January and up 10.3% compared with February 2023.
That’s about a 2.9-month supply at the current sales pace.
The median existing-home sales price continued to rise in February, increasing 5.7% year over year to $384,500.
It was the eighth consecutive month of year-over-year price gains.
“Additional housing supply is helping to satisfy market demand,” says Lawrence Yun, chief economist for NAR, in a statement. “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.”
Properties typically remained on the market for 38 days in February, up from 36 days in January and 34 days in February 2023.
All-cash sales accounted for 33% of transactions – up from 32% in January and 28% one year ago.
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.
Distressed sales – foreclosures and short sales – represented 3% of sales in February, virtually unchanged from the previous month and the previous year.
Photo: Phil Hearing