Existing home sales jumped 4.2% from January to February, reaching a seasonally adjusted annual rate of 4.26 million in February. According to data from the National Association of Realtors (NAR), year-over-year sales were down by 1.2% from 4.31 million in February 2024.
The total housing inventory by the end of February was 1.24 million units, up 5.1% from January and 17% from the 1.06 million level one year earlier. Unsold inventory is at a 3.5-month supply at the current sales pace, unchanged from the prior month and up from 3.0 months in February 2024.
The median existing-home price for all housing types in February was $398,400, up 3.8% from the $383,800 price from one year ago. First-time buyers were responsible for 31% of sales in February, up from 28% in January 2025 and 26% in February 2024. Cash sales accounted for 32% of transactions in February, up from 29% in January but down from 33% in February 2024. And distressed sales accounted for 3% of transactions.
“Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners,” said NAR Chief Economist Lawrence Yun. “That means a gain of nearly $1.3 trillion in home value appreciation at a time when the current stock market is undergoing a correction. Moreover, the ongoing housing shortage, coupled with historically low mortgage default rates, implies a solid foundation for home values.”
