NAR: Existing-home sales increased 14.5% in February

According to the National Association of Realtors, existing-home sales reversed a 12-month decline in February, posting the highest monthly percentage increase since July 2020.

Sales increased month over month in all four major U.S. regions. All regions had year-over-year decreases.

Overall existing-home sales, which include single-family homes, townhomes, condominiums, and co-ops, increased 14.5% in February from January to a seasonally adjusted annual pace of 4.58 million.

Sales were down 22.6% year on year (down from 5.92 million in February 2022).

“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” NAR Chief Economist Lawrence Yun stated.

“Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

The total housing inventory2 registered at the end of February was 980,000 units, the same as in January and 15.3% higher than a year ago (850,000).

At the current sales rate, unsold inventory has a 2.6-month supply, down 10.3% from January but up from 1.7 months in February 2022.

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

The median existing-home price3 for all housing types was $363,000 in February, a 0.2% decrease from February 2022 ($363,700), as prices rose in the Midwest and South but fell in the Northeast and West.

This brings to an end a record-breaking stretch of 131 consecutive months of year-over-year growth.

Homes were on the market for an average of 34 days in February, up from 33 days in January and 18 days in February 2022. In February, 57% of homes sold had been on the market for less than a month.

In February, first-time purchasers accounted for 27% of sales, down from 31% in January and 29% in February 2022.

According to the National Association of Realtors’ 2022 Profile of House Buyers and Sellers, which was released in November 20224, the annual share of first-time purchasers was 26%, the lowest since NAR began recording the data.

In February, all-cash sales accounted for 28% of transactions, down from 29% in January but up from 25% in February 2022.

Individual investors or second-home purchasers acquired 18% of properties in February, up from 16% in January but down from 19% in February 2022.

Foreclosures and short sales5 accounted for 2% of sales in February, virtually comparable to last month and a year ago.

As of March 16, the 30-year fixed-rate mortgage (link is external) averaged 6.60%, according to Freddie Mac. This is down from the previous week’s 6.73% but up from 4.16% a year earlier.

Sales of single-family homes and condos/co-ops

Single-family house sales increased 15.3% to 4.14 million in February, up from 3.59 million in January but down 21.4% from the previous year.

In February, the typical existing single-family home price was $367,500, a 0.7% decrease from February 2022.

Existing condominium and co-op sales were 440,000 units at a seasonally adjusted annual rate in February, up from 410,000 in January but down 32.3% from a year ago.

In February, the typical existing condo price was $321,000, representing a 2.5% yearly increase.

“Owning a home provides a path to long-term financial security and is a vehicle by which to transfer wealth to future generations,” said NAR President Kenny Parcell, a REALTOR from Spanish Fork, Utah, and broker-owner of Equity Real Estate Utah.

“REALTORS deliver expert guidance, objectivity and professionalism to consumers during the complex process of purchasing a home.”

Regional Breakdown

• Northeast: Existing-home sales in the Northeast increased 4.0% from January to 520,000 in February, a 25.7% decrease from February 2022. In the Northeast, the median price was $366,100, a 4.5% decrease from the previous year.
• Midwest: Existing-home sales in the Midwest increased 13.5% from the previous month to an annual rate of 1.09 million in February, down 18.7% from the previous year. In the Midwest, the median price was $261,200, up 5.0% from February 2022.
• South: Existing-home sales in the South increased 15.9% from January to an annual rate of 2.11 million, representing a 21.3% fall from the previous year. The median price in the South was $342,000, up 2.7% from a year before.
• West: Existing-home sales in the West increased 19.4% from the previous month to an annual rate of 860,000, down 28.3% from the previous year. In the West, the median price was $541,100, a 5.6% decrease from February 2022.