Existing home sales increased by 1.7% month-over-month in February, to a seasonally adjusted annual rate of 4.09 million, according to data from the National Association of Realtors (NAR). On a year-over-year basis, sales were up by 1.4%.
Month-over-month sales increased in the Midwest, South and West, but declined in the Northeast. Year-over-year sales rose in the South and fell in the Northeast, Midwest and West.
The median existing home price for all housing types in February was $398,000, up by 0.3% from one year ago ($396,800). February was the 32nd consecutive month of year-over-year price increases.
Affordability improved for the eighth consecutive month, according to NAR’s Housing Affordability Index, rising to 117.6 in February from 117.1 in January and 103.1 a year ago. This marked the highest level since March 2022.
“Housing affordability is improving, and consumers are responding,” said NAR Chief Economist Lawrence Yun. “Still, there is a long way to go to return to pre-pandemic levels of transaction activity. There are more than 6 million more jobs than in 2019, yet home sales per year are down by one million. Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains. Wage growth is now outpacing home price growth by almost four percentage points. Mortgage rates are also measurably lower compared to a year ago.”
“Inventory is growing, but sluggishly,” Yun added. “If demand picks up notably in the coming months and outpaces supply growth, home prices will inevitably rise. That is why increasing supply is so important to help limit home price growth, improve housing affordability, and boost transactions.”
